Finally, selling a product for less than price at which your competitor is offering it does not have to mean you have to cut into your profit margin. The key to succeeding in price wars is to minimize your costs, thereby maximizing your profits. Online banks are able to offer substantially higher interest rates on saving accounts and CDs because they do not have to employ as large a staff as does a traditional bank. They cut overhead costs and pass savings on to us, consumers. Look closely at way you buy and move products you sell. Is there somewhere you could save? Is there something you could downsize or shift in order to streamline your business and lower your overhead costs? Sometimes a website with a thoroughly written FAQ page can save you from having to answer hours of customers' questions over phone.

Are all your eggs in one basket?

A successful business usually tries to build their business model around a blend of two or all of these options. You may have a superior product and do OK selling it at a much higher price than your competitors, but you will truly excel if you are able to cut costs and expand your profit margin. Do research and figure out what best price/quality levels are for your business. The HBO schedule has evolved over years as tastes and desires of their consumers have changed. Constantly evaluate who your target audience is and adjust your business plan to compensate for any changes.