What Is a Bargain Purchase Option?
Low price risk is due to. The company sets the product price too low, causing the company to incur losses or its business activities to be passive
Low price risk
Right!
- Chinese name
- Low price risk
- nickname
- Businesses incurring losses or operating activities are passive
- Presenter
- Wang Aimin
- Applied discipline
- Marketing risk management
- Low price risk is due to. The company sets the product price too low, causing the company to incur losses or its business activities to be passive
- which performed
- For enterprises, low price originally meant to attract consumers or users to buy by reducing the price of the product, so as to promote sales and realize the purpose of small profits but high sales. In fact, low prices are fraught with risks: [1]
- First, if the increase in sales volume after the low price is lower than the price reduction of the product, the overall sales of the company will decline, and the purpose of low-price sales of the company will not be achieved.
- Secondly, low prices may make customers suspect that there is a problem with the quality of the product, or dispose of inventory, and therefore not actively buying.
- Third, low prices are likely to cause counterattacks by competitors, which may lead to price wars.
- Fourth, excessive low prices have reduced the price adjustment space for the company's next step, making sales more difficult.
- Fifth, low prices will erode large profit margins of enterprises and reduce their profitability. In particular, inappropriate low prices may cause enterprises to lose many of their due benefits.