For a few years. It's idiotic.
How about rather than spewing some quote we've alll heard - why don't you try to actually explain it?
Because.......,you can't.
“The market sets the price!” We have all heard that statement and many treat it as axiomatic. After all, there are limits to prices on every product or service, and you can’t “charge more than the market will bear”. So I am not terribly surprised when someone tells me their strategy is to match the market prices. However, I am also quick to tell them “The market sets the price” is not a strategy. Taking that approach is really a choice to not think much about prices, and let competitors and customers lead you.
If the market sets the price, how does that happen? Is there some wizard hiding behind a curtain determining what the prices ought to be? Or is there some giant computer somewhere figuring out the answer to what the right prices are? Of course, neither of those things are true.
The market includes your company, your competitors, existing customers and potential customers. How does that market set a price? Do your competitors know something you don’t know that enables them to set a price? If not, how do they do it? And if you are simply reacting to prices your competitors set, then the market isn’t setting the price, your competitors are.