What Are the Risks Associated with Revenue Optimization?
While the goal is to increase revenue, some risks include:
Overpricing: Setting prices too high can drive customers away and reduce market share. Underpricing: Setting prices too low might increase sales volume but reduce profit margins, making it hard to cover costs. Product Cannibalization: Introducing new products that compete with existing ones may reduce overall profitability. Overexpansion: Rapid diversification or scaling can strain resources and lead to operational inefficiencies.