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Cons of competition-based pricing
While competition-based pricing can be advantageous, it also comes with challenges. If you want to avoid potential pitfalls, it’s important to understand what they look like. Here are a few to consider:
Cuts into profit margins
Competition-based pricing doesn’t work for every business. Small afghanistan phone number list businesses with limited budgets and businesses with high production costs are particularly at risk; setting prices too low to cover costs or deliver expected profit margins is not a good long-term pricing strategy for businesses that can’t afford it. Regularly review your cost structures to ensure your pricing strategy competes in the market and maintains the financial health of your business.