lgn1 - 8:23 pm on Jan 4, 2013 (gmt 0)
I have been in eCommerce for 15 years, and when I first started, I sold based on low price. I generated lots of sales but my margins was thin, and I quickly reached a plateau in sales, because I could not afford to advertise. That lasted for about two years and I got wise. Now I discount only 10% to 20% below retail, and I have plenty of money to grow the business, and provide a good ROI.
Also I have a better class of customer. I generally found that with customers that shop for the lowest price, there is an increase in emotional or mental health issues.
I'll take the impulse or needs based shopper over the discount shopper any day. Let the discount shopper ruin your competitors day.