We all know that pricing is a critical component of your businesses success... but how do you price and how do you price online? Do you drop your price when a recession hits?
Here is an article on online pricing strategy discussing the topic in more detail.
My opinion is that how you price depends on what type of product you sell - whether it is a one time purchase, a repeat purchase or a purchase with the opportunity to up sell. However, I never have experienced success taking the Walmart approach. For the small business, its hard to reach that kind of volume and compete in that arena.
And when it comes to dropping your price in a recession, I have found that (so far) holding it steady and offering special discounts works better than cutting the price all together. I have also confirmed this in my reading of several case studies.
However, thoughts would be much appreciated.