With shoppers shunning extravagance and merchants eager to sell inventory, prices on many goods and services have plunged. Fancy flat-panel TVs are marked to move, and flights between the coasts have dipped below $120. Forget cell-phone billing; prepaid is in.
For businesses trying to coax consumers to spend, the recession has brutalized profit margins. Still, despite the current profit pressures, an even bigger worry looms: What if the low prices become the norm?
Source: CRM Daily