 
Question:
Is it okay to use price to help drive sales or prevent sales losses?
Answer:
Not always. Price often does have a powerful effect on sales, but there are two important reasons not to make hasty decisions.
- Not all pricing problems are problems with price. You can face a pricing problem because you are not appropriately communicating value, because your distribution channel is failing to deliver on the complementary service necessary to realize your value, or because a competitor has entered the market with a cheaper product that appears to be a good substitute.
- Sometimes, the best solution to a pricing problem is to walk away. This is especially true when the problem is localized. For example, as trade barriers declined in the European Economic Union and competition increased, many companies learned that they were better off avoiding low-priced markets than letting those markets undermine higher prices elsewhere in the EC.
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