Price war good for consumers

A few game changer happening from fast food to retail and even mortgages.

Here it goes.

1. KFC has a value meal including a burger, fries and drink for only $5.95. This is a price I haven't been for a long time.
Other fast food chain has responded with even more eye-popping deals such as $4.95 meal from Hungry Jacks.

2. Coles started a retail price war from its 'pricing staying down' campaign. Two litre milk price is now $2.0 for its own brand. Woolworth, the other biggest retailor responded with matching price.

3. National Australia Banks (NAB) delivered a messages loud and clear with its intention to break away from the image of 'big four' banks.
It offers to pay $700 mortgage exit fees for Westpac and Commonwealth (CBA) mortgage customers to switch loan to NAB.
NAB has also been offering the lowest standard variable mortgages amongst the big four as well.

CBA responded with offer to pay $1200 to NAB customers who switch their mortgage to CBA as well as $100 for NAB's credit card and deposit customers to switch.

Game on.

The bottom line is when there is competition the consumers will stand to benefit to some degree.

Bear in mind though, someone will have to pay for all these, either the banks take a hit to its revenue or pass the cost to other customers (e.g. business customers).

Interesting to follow further developments in this space.