On The Folly of Lowering Prices

Carnival of the CapitalistsThis week’s Carnival of the Capitalists is posted at the brand new Carnival of the Capitalists site.

One of the entries I highly recommend is by business owner Wilson Ng. He writes about the mistake so many entrepreneurs make by pricing offerings lower than competitors. He says, “Conduct your business in such a way that you can sell the product at a higher price on average compared to your competitors.” And what about the successful businesses that compete by having the lowest prices (Wal-Mart, yes, we’re talkin’ about you)? That, Wilson says, is “not about lowering prices. It is about their ability to lower their cost thus increasing their ability to lower prices.”

The Carnival of the Capitalists is a weekly online roundup of business writings from various blogs. Enter your own article at BlogCarnival.com.

UPDATE MARCH 5, 2007: The Virtual Wire continues the discussion about raising prices (for some reason the trackback did not come through, so I am linking directly).

Anita Campbell Anita Campbell is the Founder, CEO and Publisher of Small Business Trends and has been following trends in small businesses since 2003. She is the owner of BizSugar, a social media site for small businesses.