Running low margins in retail is often more of a really cutthroat business strategy, rather than simply trying to be nice to customers. You can easily run smaller competitors out of business, and increase your volume and overall profits, by making the competition unable to compete.
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Running low margins in retail is often more of a really cutthroat business strategy, rather than simply trying to be nice to customers. You can easily run smaller competitors out of business, and increase your volume and overall profits, by making the competition unable to compete.
"Predatory pricing" has the name it has becuase its..not 'nice'
https://en.wikipedia.org/wiki/Predatory_pricing
It is also one of the easiest ways to bankrupt your own business.
Business Admin 101 - Approaches to combat Predatory Pricing.
http://www.fee.org/the_freeman/detail/herbert-dow-and-predat...
Predatory pricing is usually subsidized by unrelated but profitable lines of other business--which makes it sustainable (in that context).
Evidence?