How should we interact with Rate Shops?
Rate shopping data is a beautiful “thing”, but also a very dangerous one.
If someone on your competitive set does not know what he/she is doing with rates and you are trying to follow their price in the blind, whatever they are doing wrong, you are also doing wrong and maybe even more.
A professor in Cornell University, very well said that “if you price base on your competitors, you are going to deal the mercy of your dumbest competitor”.
Which is actually very true.
Be very careful in the way that you treat your comp set data.
Display them, be informed, decide which behavior of the comp set you are going to follow, but do not take it as a blanket statement.
In general, if you just take your competitors pricing as your blanket statement to calculate your pricing, you are going to be at the mercy of your dumbest competitor and you are going to end up losing money.