Hey, interesting stuff, Phil! I love studies like that that seem so counter-intuitive.
Incidentally I agree 100% with Dien's contention that chopping prices isn't the answer, but adding value. No one wants cheap garbage, but people are willing to pay for something valuable. Using a loss-leader to engage the consumer, and then cross- and up-selling has been a successful marketing strategy for years, no reason to think it won't keep working!
Best of luck in both of your businesses,
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Brian
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