- Capitalism and Alternatives -

why lower your price to undercut the competition

Posted by: DonS ( USA ) on November 23, 1999 at 10:19:03:

In Reply to: For the LAST time...(better) posted by Stoller on November 19, 1999 at 14:42:22:

: Then the manufacturer determines how many cranks are willing to overpay.

: Great.

: Now the manufacturer's competition sells them for $90---which the crank, who's getting low on cash, readily purchases.

Don: This indicates that the candy bars were not selling well enough at $100. After all, why lower your price to undercut the competition if enough cranks are willing to pay $100? An insufficient number of cranks willing to pay, I guess. In other words, insufficient consumer desire.

: It stops at the point where production costs leave NOTHING for profit.

: No matter what ANY CUSTOMER thinks.

Don: So you think they will maintain that price if NO ONE wants the product?

: Get serious you guys.

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