Low Prices Are Not Always Your Friend
Cutting prices might seem reasonable given the state of the economy, but doing so could backfire over the long run, argues our columnist
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The economic news has not been good of late, and that may lead you to believe you should find a way to lower your prices. After all, consumers will be looking for ways to cut back. But while lower prices may make sense from a short-term perspective, they may not be as strategic as you think. Let me explain.
The other day I saw an ad for a convenience store trumpeting the virtues of its affordable, freshly brewed coffee. The headline said "Because your morning coffee shouldn't cost more than your lunch." The obvious dig at Starbucks (SBUX) made me chuckle.