What to Do When a Competitor Drops Their Prices
You wake up, check your dashboard, and there it is — your top competitor just dropped the price of their best-selling sofa by 15%.
Panic? Not anymore.
In ecommerce, price drops are inevitable. But how you respond determines whether you lose sales or win market share. Here’s how furniture retailers can turn competitor price changes into a strategic advantage.
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Step 1: Don’t React Blindly
The first instinct is to match or undercut your competitor’s price immediately. But that can be a costly mistake — especially if the discount is temporary or stock-driven.
Before acting, ask:
- Is this a promotion or a permanent price change?
- How long has it been live?
- Is it applied to all variants (colours, sizes, materials)?
- Are they clearing old stock or testing a new price point?
With tools like Fido Fetch!, you can quickly verify whether the drop is part of a wider pattern or just a short-term campaign.
New to automated monitoring? Start with our How to Track Competitor Prices Automatically.
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Step 2: Check the Product Positioning
Not all price drops are equal. If your competitor reduced the cost of a sofa that’s lower quality or a different style tier, the impact might be minimal.
Compare:
- Product specs and materials.
- Delivery costs and lead times.
- Warranty and return policies.
Sometimes the real difference isn’t the sticker price — it’s the total offer value.
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Step 3: Look for a Pattern
A single price change isn’t always cause for alarm. But if you notice several drops across categories (sofas, beds, wardrobes) in a short time, it might signal a broader pricing strategy shift.
Fido Fetch! helps you detect these changes early by monitoring multiple SKUs and categories continuously. That means you can see trends, not just isolated actions.
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Step 4: Adjust Intelligently
Once you’ve verified the context, decide your move strategically:
- Hold your price if the competitor’s offer looks like a clearance or short-term promo.
- Match gradually if the item competes directly in customer searches.
- Reposition your value — highlight faster delivery, higher quality, or free assembly.
- Bundle or upsell complementary items instead of cutting prices.
The goal isn’t always to be the cheapest — it’s to be the smartest.
Need a broader framework for price positioning? See the Ultimate Guide to Competitive Price Tracking.
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Step 5: Monitor the Outcome
After responding, keep tracking.
Did your traffic or conversions change? Did the competitor revert their price after a few days? Are new competitors entering the same price range?
Marketing team using these alerts? Here’s how to turn them into campaigns: From Data to Action.
Automated alerts from Fido Fetch! make it easy to follow the ripple effect. You’ll see when the market stabilizes — or when it’s time to make your next move.
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Example: How a Retailer Protected Margins
A UK retailer noticed a competitor suddenly dropped prices on all 3-seater sofas. Instead of reacting immediately, they waited two days — and discovered it was part of a weekend flash sale.
By holding their prices steady and emphasizing “In Stock – Next Day Delivery,” they maintained sales and margins while the competitor cleared limited stock.
That’s smart data in action.
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The Takeaway
When competitors change prices, you don’t need to scramble — you need information. Real-time visibility lets you respond strategically instead of emotionally.
Tools like Fido Fetch! make that possible by alerting you to price changes as soon as they happen, so you can make confident, data-driven decisions.
