drakmanover opened this issue on Oct 16, 2008 · 65 posts
ockham posted Thu, 16 October 2008 at 10:29 PM
Bear in mind that strict "supply and demand" doesn't apply very well here.
Only a small number of merchants do enough volume to be concerned
with the optimal price point. Most are happy to make a few sales now and
then. So a decrease in volume may not even be noticeable, and it wouldn't
trigger a price change.
Let's say one of my products sold 5 units in the last year. If it's selling more
slowly because of economic conditions, it might sell 3 units this year.
I could gamble on lowering the price, but I don't know if that will make it
sell more often; I do know that I'll get less money from each unit.