Cost Effective? Part 3 of 3

1. Can the incremental sales produce enough incremental profit to offset the loss in margin from lower prices? The increase in sales needed to offset the loss in margin is significant.

2. Once your price is at the lowest market price, decreasing prices below this level may shift little market share away from other low-priced merchants. The shift in market share between being the lowest price vs. 5 percent below the market price vs. 10 percent below the market price may be negligible.