There are a wide range of techniques you can use to set prices, and each has its advantages and disadvantages. In order to maximize profits, it is important that you choose the right method.
Red flags lead to audits, which can lead to penalties, and sometimes even jail.
If you would like to raise a red flag in your business plan, just say that your pricing strategy, and maybe even whole marketing strategy, is based on having lower prices than your competition. Upon seeing this strategy, potential investors will probably run for the door and start evaluating their next opportunity. Lower prices are associated with lower profits that cannot be made up with additional volume. The best place to get examples of this is the stock market. Barring other factors, its stock price always moves lower.