What is one way a seller can mitigate losses when a buyer fails to pay?

A seller can mitigate losses when a buyer fails to pay primarily by pursuing legal remedies for damages. When a buyer defaults on payment, the seller has the option to take legal action to recover the amount owed. This could involve filing a lawsuit or seeking other legal remedies that can lead to a financial recovery. Obtaining a judgment can allow the seller to recover not only the owed amount but possibly additional damages depending on the circumstances of the breach.

Other options may not effectively address the immediate financial loss experienced. Lowering prices for future transactions may help attract new customers, but it does not address the existing loss. Changing suppliers could potentially offer better terms in the future, but it does not resolve the financial impact of the current buyer's failure to pay. Similarly, increasing production rates without securing additional sales does not mitigate losses from the non-paying buyer and could exacerbate financial risks. Thus, pursuing legal remedies offers the most direct approach to recover losses in this context.