Yet, cutting prices is often not the best answer. Reducing prices unnecessarily can lead
to lost profits and damaging price wars. It can cheapen a brand by signaling to customers
that price is more important than the customer value a brand delivers.
Instead, in both good economic times and bad, companies should sell value, not price. In some cases, that mean selling lesser products at rock-bottorm prices. But in most cases, it means persuading customers that paying a higher price for the company’s brand is justified by the greater value they gain.