One of the greatest concerns of business owners is how to price their products or services. Often, consumers say, “Well I would buy it if it were in my price range.” And, that idea tempts many business owners to lower their prices–just to sell more products.

However, as you already know, price reductions sometimes create more problems than they solve.

For example, price reductions:

Decrease net profits
Lead to the purchase of lower quality products
Increase customer demands to drop the price even lower!
Require even more sales to make up the difference in revenue
Need a larger quantity of products