Below-Market pricing

By setting prices below those of competitors, some firms hope to attract a sufficient level of volume to offset lower profit margins

This also allows them to eliminate services which would otherwise be necessary with higher prices.

However, in most cases this is a short term strategy as larger companies with a greater pool of resources often undercut the price of small discount retailers.

Unless a company truly is a low-cost producer, it would be better of building its competitive edge on something other than price.