The most effective pricing strategy for small businesses is follow-the-leader pricing due to its simplicity and its ability to keep price parity for the small business.

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Follow-the-leader pricing is not necessarily the most effective pricing strategy for small businesses because it does not take into account the unique expenses and pricing considerations of the individual business. It also limits the potential for differentiation and may lead to price wars. Instead, small businesses should consider a variety of factors, such as their target market, product differentiation, and production costs, when determining their pricing strategy.

The Most Effective Pricing Strategy for Small Businesses Is Follow-The-Leader