The level of competition was one of the key pricing factors we discussed in the beginning of the course, defining whether the competition is weak or strong, we will set the direction for our pricing policy. If it's a weak competition, we should look for appropriate price techniques for increasing our rates. When defining the level of competition, we count only the direct competitors in our segment our segment, but how big is it? How to measure it? One possibility is to count the number of competitors. Suppose there is only one competitor in our niche, then competition is called monopoly.

Two to five competitors, oligopoly. Six to 10 competitors is considered weak competition 1130 baiters medium competition. Over 30 competitors is considered strong competition. Of course, this depends on the size of your back. your common sense is absolutely right to advise you to increase the prices when the number of your competitors is going small. In the real world, the competition is usually growing.

And often we need practice to keep the rates on the present level. In general, if your direct competitors are over 30 in your niche market, then do not waste resources on time on how to increase your rates. But rather focus on how to keep price levels and increase sales for the tactic We'll need to understand how price elasticity work and price elasticity is exactly the topic of the next slide.