When you sell any product or service, you want to strike a careful balance between charging a price that leaves you with a profit and one that encourages customers to buy. Charge too much, and you may price out customers. Charge too little, and you may end up losing money on each sale.
But what happens when you take pricing below the cost of production? This tactic – known as predatory pricing – aims to drive out your competition by forcing them to lower their prices.