You shouldn't lower prices as a direct reaction to your competitor. You should lower prices as a reaction to your customers willingness to buy at a given price. It's an indirect reaction but it factors in the actual market.
When sales are still growing YoY (like the post covid market), but prices are up 30% or 40%, you understand your customer is still willing to pay the higher price
Its similar to a McDonalds or Starbucks situation where you just keep increasing prices dramatically until you get a first quarter of lower than expected sales, then you start adapting downwards
Most corporations still haven't hit that limit, see streaming companies increasing prices every few months, they still haven't hit the point where profits decrease YoY. When they do the streaming prices start decreasing
You won't die if you stop watching Netflix. We aren't talking food or medicine here. In fact your life would probably improve. But addiction is a real animal.
Screen addicts almost never stoop that low and the ones that do are addicted to a cam girl (e.g., Grant Amato), porn or gambling, not Netflix (or social media).
It would be smarter for them to raise the price of their membership another $10/yr to offset the losses than it would to raise the price of their hot dogs another $0.50 to make them profitable.
https://customerservice.costco.com/app/answers/answer_view/a...