How do Shopify merchants decide when not to match a competitor's lower price?

OmMarginshield launches on Product Hunt tomorrow, and I am using the prelaunch window to sanity-check one core workflow with Shopify merchants and operators.

When a competitor drops a price, what guardrail matters most before changing your own price?

The guardrails I am testing are: minimum margin or price floor; maximum price change per update; evidence confidence before acting; manual approval before changes go live; and avoiding a price war even if the competitor is cheaper.

Founder disclosure: I built OmMarginshield, a Shopify app focused on competitor price monitoring with margin guardrails and manual approval by default. I am looking for practical workflow feedback, not upvotes.

If you run or advise a Shopify store, what would you want a pricing tool to prove before it suggests a price change?