Predatory Pricing

Predatory Pricing

Definition of Predatory Pricing

In this pricing strategy, your goal is to attempt to get rid of rivals or give new ones a huge obstacle by making your prices low.

Predatory Pricing

Description of Predatory Pricing

It begins with a gradual price decrease, which may occur in a price war. Illegal in quite a few countries, but it’s often hard to tell whether it’s an actual rivalry.

Advantages of Predatory Pricing

It’s one way that you can eliminate new companies from joining the market, which ultimately helps lessen the amount of competition. You may even end up holding the dominant market position.

Predatory Pricing

Disadvantages of Predatory Pricing

There’s a chance that it’s illegal. However, if you do pursue it, there’s no guarantee that it’ll help you for long because rivals will still eventually figure out how to dig into the market.

Predatory Pricing