In every business I've ever seen, there's always some manager
who wants to cut prices. If business is good, the reasoning
goes, a lower price will help to capture an even greater share
of the market. And if business is bad, cutting prices will help
avoid disaster.  Well, that's nonsense. In my experience, at
least, most companies don't charge enough for their products.
When business is good, you need cash to fuel growth, cash that
could be generated by high margins. When business is bad,
cutting prices often makes matters worse. You have to increase
sales significantly to recover the dollars lost by the cuts.
Let me try to convince you of the folly of charging too little.
Suppose that you sell 100 fishing lures a month at $1 each. They
cost 55? each, giving you a gross profit of $45 and a gross
profit margin of 45%. If you cut your prices by 15% and your
unit volume stayed the same, your sales would drop to $85 and
your gross profits to $30. But if you want to maintain your
original $45 gross profit after th