Automated pricing to stay competitive?

[kris]

Just wondering if anyone here has used (or even thought about using) an 'Automated Pricing Agent' - one that will lower your prices on eBay when a listing of the same item is posted at a lower rate.

Reason for asking is that I've been having a hell of a time with a competitor lately. We are close in location, sell the same products, and literally go back an forth all day long trying to stay on top of the other. It's tiring. I've tried to leave it be, but even with my prices only a few cents higher that his, it affects my sales tremendously.

Would love to hear thoughts on the matter.

[Ebayorbust]

You could try contacting him to discuss the situation. Difficult to maintain pricing agreements though.

I have been through this before. Drives the price so low, it hardly becomes worth selling.

[kris]

Exactly. We are both losing a lot of mney by continuing on like this. And there are enough sales for the 2 of us - no doubt.

I like your suggestion - I have acutally been thinking about contacting him with some sort of agreement. Problem is... I have no idea what type of agreement I might suggest. Well... that, and that I have no idea what type of person I am dealing with.