I came across this on-line article recently: Marketing In Hard Times: Pricing. It has some good advice concerning why you should think twice before deciding that cutting your prices for your goods or services is the best way to attract business. Some customers won’t be able to afford you…that’s a fact no matter how the economy is doing. But lowering your prices could send the message that you were overpriced in the past and contribute to the degradation of your image and your brand. And when the economy changes for the better eventually (it WILL, right?!), how hard will it be for you to re-price to where you really want to be?
When money is tight, customers are looking for value. Hard times or not, it would seem the best way to go is to show them why your good/services are worth the extra money!