For many SaaS businesses, competitor based pricing may not be the right pricing model. It can be combined with another pricing model but not solely used as a stand-alone pricing metric. Also, the biggest setback is the fact that you’re pricing is based on your competitors' pricing method. The price doesn’t equate to the value you’re providing for your customer. It doesn’t do justice to your product offerings and the value of your product will get diminished with the crowd. If you aren't perceived for your value as a product, your customer might not think twice to choose your competitor's product for a similar price. In addition, you will be having no price intelligence as to why a particular set of features are bundled together and offered for that specific price. Competition based pricing is a bad case of plagiarism when implemented alone and will help you sustain in the market only for a short while.