Quote:
Originally Posted by Djblois
Fritzly,
I guess you never took business classes or economics classes because that is every businesses strategy. How do you think a free market works? You release something believing the demand will be this high but it is a lot lower, so you lower your prices. And vice versa, if the demand is higher you raise your prices. You sell your product at the equilibrium where what consumers are willing to buy is equal to what you are willing to sell. It happens everyday and does not hurt the business in any way.
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Besides the fact that I have a Master in International Economics a strategy like the one you describes is the one that an inept management, unable to correctly estimate the highest selling point for product, would ended up dealing with.
The ability to determine the highest price potential clients are willing to pay for your product is not an empiric task or the results of some kind of guess; it is an extensive and complicate tasks that involves the analysis of many factors like general economic trends, comparative marketing etc. etc.
This is, among other similar tasks, what I do and considering what the shareholders pay me it seems I do it very well.