Saturday, March 21, 2015

Why would a business choose to sell goods or services at cost rather than at a profit?

Why would a business choose to sell goods or services at cost rather than at a profit?
The business may be at an introductory stage in its life, where it is breaking into the market and trying to get noticed by the consumer. A way of getting noticed is to have very low retail prices compared to the competitors, which will attract consumers to your business, where you can then increase prices once the business has a reputation in the market.

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