underpricing

How to Mitigate the Risks of Underpricing?

To mitigate the risks associated with underpricing, businesses can adopt several strategies:
1. Value Addition: Instead of just lowering prices, add value through better customer service, additional features, or loyalty programs.
2. Gradual Price Increase: Implement a strategy to gradually increase prices as the product or service gains market acceptance.
3. Market Research: Conduct thorough market research to understand the optimal pricing strategy that balances customer acquisition with profitability.
4. Brand Positioning: Maintain a strong brand position by focusing on quality and customer experience, even if prices are initially low.

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