Lowering Prices Is Good Business These Days

Thanks to the economic situation, prices are starting to go down. Retailers, restaurants, and pubs are all lowering their prices to stay in business. From the pub in England offering a £1 food-menu to the Barnes and Noble here in the US putting some really nice weekly planners half price, sellers are saving their customers money and themselves in the process. In fact, from January 7th 2008 to January 2nd 2009 Walmart (WMT) went up over 25% while McDonalds (MCD) went up over 11%. [1]

Whether or not things will stay like this, I don’t know. One thing is for certain, if you are a retailer or sell goods to average consumers, lowering the price is the best way to attract more customers. Even though I have some money to spend, I feel like spending less when the economic situation is poor. I’m sure others feel the same. The worst thing to do now is raise prices.

I hope that the economy recovers in 2009, but if it doesn’t I think that the “sell cheap” motto should be adapted by sellers. If not, then let’s hope some revolutionary technology is discovered that will improve human life and the US and World economies.

[1] http://finance.google.com/finance?q=wmt%2C+mcd