Businesses Undercutting Each Other

Businesses Undercutting Each Other

It was interesting today as I was at a market where there were these two grocery stores that were side by side and pretty much offered the same stuff. For the most part they were attracting the same customers and in order to win customers it seemed like they were constantly changing prices on each other. For example, in the beginning both places were selling oranges for about eighty cents a pound and the next hing you knew one place drops it to seventy nine cents.

That would be an example on how competition is good. At the same time, it makes you wonder if you should shop at places where there are businesses of the same category that are all within close proximity of each other as it increases the pressure of them having to compete with competitor prices. As well, many times it makes things like price matching a lot easier. It almost makes it like a flea market where you can simply point at how literally the guy next to him is selling it for cheaper to get them to drop the price immediately.

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