Setting high prices can lead to several risks: 1. Reduced Customer Base: Not all potential customers may be willing or able to afford the product. 2. Perceived Overpricing: If customers perceive the product to be overpriced relative to its value, it can damage the brand's reputation. 3. Competitive Vulnerability: High prices may attract competitors who can offer similar products at lower prices. 4. Economic Sensitivity: High-priced products are often more sensitive to economic fluctuations.