timwilliams - 1:04 pm on Aug 1, 2012 (gmt 0)
I know, more money right?! But here's the thing, I'm thinking it might be better in the long run to make a few dollars less a day in order to take sales away from the competition.
Lets say there are 100 buyers a day for a product. When we sell that product at 1.00 we sell 25 of them a day, 1/4 of the total buyers. When we sell the product at .50 we sell 45 of them a day, netting 2.50 less a day but taking 20 sales away from the competition. So is it worth making less money to take significant sales away from the competition?
Or maybe the thinking is wrong, maybe there's 100 buyers in the market at a 1.00 price point and there's 120 buyers in the market at a .50 price point and we're not taking anything away from the competition with the lower price...