How is the belief that lower prices always attract more customers misleading?
businesses operate under the assumption that lower prices always increase demand, but this can lead to profit erosion, brand devaluation, and unsustainable operations.
Why This Myth Persists:
What Businesses Overlook:
Value Matters More: Many customers are willing to pay more for quality, service, and reliability.
Profit Margin Impact: Constant discounts reduce cash flow and margin sustainability.
Brand Positioning Risks: Low prices may signal low quality, especially in premium markets.
Better Strategy:
Focus on differentiation, customer experience, and unique value.
Use pricing as part of a broader value proposition—not a standalone tactic.
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