One of the most common errors new foodservice operators experience is pricing their food too low, thinking that they can undercut competitors. Explain why this is a poor strategy for success. Explain your position using 3-5 substantial sentences.

Respuesta :

The marketing strategy described above in which case, new food service operators price their food too low because it short-changes the operators and leaves their competitors with a competitive advantage.

Why is the error of undercutting competitors by low pricing a bad strategy?

It follows from the task content that the concept embraced by most new food service operators is; low pricing.

However, this strategy short-changes the operators as cutting prices has a chain effect whose end result is a low quality product and renders the customers only one-time patronage ones.

This leaves the competitors with an advantage provided their products are of better quality.

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