zlacker

I agree. I've always heard "charge what the market will bear."

Why would a reduction in advertising costs equate to lower consumer pricing — if there's a better margin to be had instead?

>>aesh2X+(OP)
Because for most products brand fidelity isn't keeping competition away. Higher than necessary margin does not last long in a competitive market.

>>hirako+Lq1
Good point. That can be true if two competitors are competing on price as a primary factor. Price might not be the biggest factor, however, and improving the margin would be attainable in that gap.