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I agree. I've always heard "charge what the market will bear." Why would a reduction in advertising costs equate to lower consumer pricing — if there's a bette
by aesh2Xa1 3y ago
I agree. I've always heard "charge what the market will bear."
Why would a reduction in advertising costs equate to lower consumer pricing — if there's a better margin to be had instead?
- hirako2000 3y agoBecause for most products brand fidelity isn't keeping competition away. Higher than necessary margin does not last long in a competitive market.
- aesh2Xa1 3y agoGood point. That can be true if two competitors are competing on price as a primary factor. Price might not be the biggest factor, however, and improving the margin would be attainable in that gap.