People are lazy, and your customers are people That's why they are likely to go to the store nearest them, the Web site with which they are familiar and their dealer to get their oil changed. New Economy companies need to take into consideration that people aren't looking to change the way they do things for the most part. If using your product requires them to completely alter their behavior, be sure you have a proposition so compelling they'll leap at it. Companies have spent millions of dollars making their businesses more convenient, their services easier to use and their product offerings deeper and more extensive. Even when consumers change their behavior, they'll prefer a company they know over one they don't.
Discount is a dirty word Trying to be the cheapest can be a prescription for an early exit.
Price is the wrong ground on which to make a fight unless you truly have a significant, sustainable cost advantage. Successfully selling products for less actually takes true genius and often significantly more investment up front. Further, the only way to sustain this strategy is to outlast the competition. There's always someone out there who is willing to behave even more irrationally than you. U.S. car companies and airlines are particularly adept at trying to buy share and lose money.