09 May When Pricing Too Low Hurts
Posted at 03:31hNo matter who you talk to in Perth, Melbourne or Sydney it is becoming increasingly obvious that folk with a job are stashing their cash. Consumer confidence is all over the place and in most people are using low interest rates to maintain their payments and pay off debt. The consequence of this is Sellers are resorting more and more to dropping price to get people to act. Is this strategy going to be successful? Probably not, especially when it comes to high end or luxury commodities. I take you to case study that a professor of mine presented to us in business school. It has always stuck in my mind.