Quoted from rotordave:If that was the case, the intelligent business decision for Stern would be to make a killer pin, and undercut the opposition, kill their sales and hopefully destroy their company.
Pricing your pin far more expensive than the oppositions (which some perceive to be a better presented product) only drives customers to buy the oppositions products.
Sort of Business 101 really ...
rd
I've also wondered if they would do this at some point. They're the 800-lb gorilla of this industry, and have been cost-cutting for some time. They could easily absorb a significant price drop and deal the competition a possibly deadly blow.
But as of yet, it doesn't seem to make business sense to do so. Why drop prices when you can raise them and still sell more? Because the competition isn't a threat yet. No one has made any dent in Stern sales, they're still back-logged on deliveries despite price increases. If one day sales stagnate due to real competition, I'd still be on the watch for Stern to bring the hammer down.
Pump up, and sell out, before they get to that point is also a route that makes sense.