In an economic downturn, many businesses lower their prices in order to ensure sales volumes are sufficient to generate enough cash flow for the business to meet its financial obligations, such as paying staff, meeting loan repayments and paying suppliers. This approach ensures a company's:

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understand the objectives that guide pricing strategies. Well-run businesses put their survival ahead of short-term profit considerations. Profitability over the long term leads to greater total wealth for business owners than does maximising short-term profits at the expense of the future of the business.

In an Economic Downturn, Many Businesses Lower Their Prices in Order