- BT is being accused of predatory pricing
- Netflix cuts prices to pursue emerging market growth
Pricing your product right in an inflationary world is tough. If a company doesn’t increase its prices enough, then investors will complain about its falling profit margins. But if it increases them too much it runs the risk of losing its customers to competitors and losing market share.
After years of struggling to keep up with demand, Tesla (US:TSLA) quickly responded to a rapid shift in this dynamic by lowering prices for its most expensive cars in the US. This year, the starting price for the model S – which has now been on the market for a decade – has been reduced by 5 per cent to $89,990 (£74,178) while the cost of the Model X has come down 9 per cent to $99,990.