Competing on price is a race to the bottom.
Don’t do it.
The only times you should apply lower pricing are:
a) Hooking customers for other products that are more profitable (cross-subsidization)
b) Driving competition out the market with the intention of pushing prices up once you have a monopoly.
In other words, discounted pricing is a strategy, not a differentiator.
Stay away from commodity products and services.
Sell stuff where you have pricing power, i.e.: only you can provide it.
When you drop prices, do it for strategy, not competition.