As for prices and competition, it is seen as a war in a good sense, what we will call a "price war" between competitors, it becomes difficult to establish the moment when such dispute for a better price positioning from the perspective of customer will end.Each competitor carefully analyzes the competitor's movements, waiting for the best time to act in relation to prices and what are the best marketing strategies to use and enjoy a market share that is convenient for them in view of the real possibilities of production, with wide coverage of its variable costs, as far as possible.

A market dispute based on price represents a form of predatory competition, that is, one that causes more damage than benefits to those who compete in this way. Each company has a certain composition of costs that must be covered by sales revenue, which when they are made in an unruly way, with a view solely to obtaining gains in market share, it can make the very survival of the business unfeasible.

In some very particular moments of their organizations, entrepreneurs somehow sacrifice the contribution margin in favor of obtaining the order in order to cover their company's fixed costs.

Concessions on the sales price may even mean a zero contribution margin, but never a negative margin, because this means that not even the variable costs directly appropriated to the cost of the product were covered by the sales price adopted in EXTREMIS (IN THE EXTREME, AS AN EXTREME UNCTION, A LAST PRAYER FOR THOSE WHO ARE ABOUT TO DIE). It represents, therefore, a true "corporate suicide". with the supplied product. 

There are other ways to practice some concession to the customer, in most segments of activity, both industrial and commercial, before incurring in a competition in a way that is almost predatory. important variable that is competition in the formation of sales prices.