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Example 4

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Price matching: Does your company, as a matter of policy, match the prices of your competitors? Have you done this and not revisited these changes in your price list for so long that every item you now sell matches the price of the lowest retailer in town? Are your profits substandard?

For several years a Vancouver hardware supplier went down this road, until the overall performance of the company suffered. Changing price lists on the fly to respond to perhaps fleeting customer demand is easy. Remembering to put the prices back at some point is the hard part. So, margins fell and profits suffered.

Pricing Strategies for Small Business

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