Crazy Competitor changes prices

[Anonymous]

I bought a mat from a guy that owned 7 stores about 1 year ago. He recently sold the remaining stores execept the one closest to mine. It was the worst performing store and in the worst condition. The owners son is now running this last remaining store. He raised his top prices to $1.25 from $1.00 and we followed suit. After about 4 months I see that he has now lowered his top prices to $.75. What is this guy thinking? and what can I expect. Our customer bases are different and my store is cleaner and nicer. But I don't want to lose anyone to this guy. On the positve side I just but in a new bathroom and repainted the place and everyone comments on much nicer the place is since we bought it.

[Outlaw]

What can you expect? You can expect him to go out of business very soon.
Run your store as you see fit and don't let the competition make any decisions for you.

[Anonymous]

If he jacked the prices to 1.25 then went down to .75, perhaps he has no clue what he is doing.

And if he doesn't, maybe as he has equipment problems things won't get fixed and the place will just spiral downhill until he gets overwhelmed with it and gives it up.

I'd certainly take a wait and see attitude and see what happens with your TPD, as well as monitor the condition of his place. Personally I wouldn't drop my price unless my business *really* dropped off, and if his place is a dump that probably won't happen anyway.