Change the perception of your brand

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It could spark a price war
If you drastically reduce prices, don't be surprised if your competitors take similar measures.

There's a good chance they're thinking the same thing you are: that france mobile database the way to increase sales is to take an axe to their prices. But this can start a price war, and once you're in that spiral, it's very hard to escape.

Unfortunately, there is a minimum price you simply have to sell products for before you start to make a loss, and if your competitors can undercut you low enough, you will soon be in financial trouble.

It can touch your profits
As a follow-up to our previous point, cutting prices can hurt your profituri . Too many online retailers seem to not realize this; they still believe that cutting prices increases sales and therefore revenue. But it’s not quite that simple.

Excessive discounting, even if it increases the number of items you sell, can hurt your finances overall.

It's worth emphasizing again here that being too reliant on discounts can change how people view your brand. If you want to position yourself as a basement outlet, this isn't such a big deal.

But if you want to emphasize quality and exclusivity, discounting can undermine your appeal in important ways.

Again, look at it from a consumer's perspective. If you see an online retailer that deals in discounts, are you likely to see it as a high-end brand? Probably not.