You will, of course, subscribe to the email marketing lists of your competitors. After all, they will subscribe to yours. So what should you do when you receive an offer for an identical or similar product to one you market which undercuts yours?
The temptation is to react quickly and decisively, but we are a data-driven business so it is best to gain information before responding to what might have little effect on you. After all, your price will have decided on valid reasons and whilst a competitor publicising one significantly lower than yours is a new factor, it is not necessarily one to cause you to cut yours. They must have a reason for slashing their prices. For instance:
1/ They might be a new company. If so then the lower price can’t be held for a long time. Sooner rather than later they will have to raise them, and probably to a level higher than yours in order to make up their losses.
2/ They could be a struggling company. The slashed prices might be a last ditch attempt to obtain subscribers to their email marketing lists.
3/ They might be failing. They probably feel it is time to realise their assets.
4/ It could be that they are dumping the line. If they have a new line of products, then a reduction in price will solve two problems at once: clear their old stock and hurt their competitors, at least the ones with that stock that item. If you react you could increase your problems.
5/ Discover if they are recruiting. If they are advertising for a senior marketing manager, then this ploy might be a junior flexing muscles. If, however, they are after support staff at various levels, then they could be expanding. Either way, now is not a good time to eat into your reserves. Wait and see their strategy.
If a company suddenly undercuts you then you should do something. However, waiting for evidence of the best way of going is doing something. Do not just drop your prices in response without good reasons of your own.