Question

you have heard that customers will try a new caterer if the price is 20% below their existing caterer. your competitor prices a luncheon at $800. what does your price need to be to get customers to try your business?

Answer 1

To get customers to try your business, you need to price your luncheon 20% below your competitor's price of $800.

20% of $800 = $160

So, your price needs to be $800 - $160 = $640.