Below-market pricing strategies can be risky for small companies because they require businesses to constantly achieve high sales volume to remain competitive.

Question

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Below-market pricing strategies involve pricing products lower than competitors, which can lead to lower profit margins. Small companies may struggle to maintain these lower prices while still covering their costs, and the need for high sales volume to remain competitive can be challenging to achieve consistently. This makes below-market pricing strategies risky for small businesses.

Below-Market Pricing Strategies Can Be Risky for Small Companies Because