Not always the best strategy.
As economies around the world weaken it is natural for businesses to try and determine the best way to stay profitable. Often the first strategy that a company comes up with is price cuts. Now is this the best strategy? Possibly not.
"Simply put, when the economy rebounds, businesses that slashed prices may find it difficult to garner the same pre-recession prices they once demanded and undo any damage the discounting pricing strategy caused their brands."
I found an article published by CRM Magazine that highlights the downfall of price cuts, especially when the cuts are internal and affect quality assurance. As many of you know the customer's perceived quality of a service or product can determine whether they continue to purchase a company's offerings when times are tough. Check out the article about the impact of price cuts.
-Brianna