L
luke
Guest
I don't agree. Price increase definitely lead ultimately to decrease sales. Even if you don't have enough units to fill demand currently you will get people who will NEVER buy at a higher price, so you ultimately losse all those customers. It's obviously a optimization calculation that has to be done, and that includes increased production possibilities to increase revenues. But that highlighted statement is not always true.
You can always run sales, just like they do at the mall. As JCPenny recently highlighted, everyday low prices might work for WalMart, but not many other businesses. The bargain hunters wait for the sales, others who want it now pay the normal higher price, it's the best of both worlds for the seller.