skibum - 8:56 pm on Aug 3, 2012 (gmt 0)

By maximizing profit now it seems like the business would be in better shape should a price war break where pricing drops significantly. By keeping prices higher, and making more profit with less work, it seems that the business would have those customers who are less price sensitive when tough times arrive.

I think it is good to keep an eye on the competition but it can lead to less than optimal results if competitive data trumps internal sales data unless there is a very serious threat.