What is WRONG with you?! Lower prices means lower revenue
Not necessarily. Sometimes it does, sometimes it doesn't. In many cases lower prices will create enough new customers to actually drive revenue and sometimes profits as well higher. It all depends on the fixed vs variable marginal costs and the costs of acquiring & handling extra customers. Companies keep staff on hand to answer those questions and project what prices will result in maximum profits. Of course, that is an art successful companies do very well and not so succesful companies do poorly. -- My BLOG .. .. Internet News .. .. My Web Page
Ah, I already know that, TK. Forgive the facetiousness, but I was trying to use a little levity in the situation. -- Attention. Attention, please. We have the funk. I repeat, we are in full possession of the funk.
