I've always thought that was a profound sentiment, and I've always wondered if, in the long run, that's the way to make a business survive. That depends on you

I've always thought that was a profound sentiment, and I've always wondered if, in the long run, that's the way to make a business survive. That depends on your customer and what your product positioning is. If, for example, you run a discount store, a la Amazon or Wal-Mart, then that advice will work well for you. If, however, you are running a company that sells products that are positioned as premium, lowering your prices can hurt you. Cutting costs on premium products immediately changes customer perception, such as when Starter was purchased by Wal-Mart or Rock & Republic was purchased by Kohl's.