It's an old wives' tale actually. If you want to be a philanthropist who has so much money that you're willing to part with it, then go ahead and lower your price. I heard Drew Barrymore just gave 1 million dollars to Kenya for the feed-the-children program. You might want to do the same.

But if you're in your business to make profits (and I do believe you are) then that's the very last thing that you should do. In fact, you should not even consider doing it.

It's so untrue and you're making the wrong assumption that consumers are actually buying based on the price. Contrary to the rumors, your target clients think more than that. They do process their buying decision and they're looking at more than the price to make their commitment to purchase.

So is it the price and the advertising you think? Uhuh. You probably think that if you lower your price and then get the news out to your target market THEN they'll purchase your product.

Well, not to burst your bubble or anything, but it's again another false assumption. Consumers basically purchase a product for one reason - because they feel that you'd be the answer to their problems. That your product will be the miracle drug for their needs.

Let's face it. If your target clients are not emotionally attached to your product, there's nothing in this world that can make them want to buy it. Even if you provide the best marketing tool and you get a professional newsletter printing company for example to produce your ad, or even if you lower your price that you don't have any profit at all, it wouldn't mean anything to your target audience.

Your consumers buy because you have something to offer that has an impact to their needs in life. They buy because it actually affects them to purchase your product. And that effect should be a positive one at that.

The key here is the emotion. Whether you like it or not, your consumers decide to buy based on their emotions. And mind you, they're not even logical about it. People are basically attracted to products and services that will make life easier and better for them. If you have something to offer in this category, then go ahead and name your price. Because it wouldn't matter anyway. Your target clients will buy it even if they have to shell out so much money just to get your product.