Thom Hogan on what a company should, or should not do, when consumer buying power is reducing in general, using Nikon as an example:
Nikon has already felt the closing of wallets. It's called "fewer unit sales." You can respond to that in a number of ways. You can lower prices, taking less profit on each item, and Nikon has done that for some of their highest volume products (mostly Coolpix). You can lower production, and Nikon has done that for most of their highest priced products. You can increase efficiencies (both in producing and selling your product), and Nikon seems to be trying to do that, too.
But you're missing one of my points: you want to RESIST lowering prices for as long as you can, otherwise you won't be able to regain that price when the economy recovers. The American car companies found this out the hard way: incentives became a way of life and permanently reduced the price of their product. On top of that, they didn't manage to have corresponding efficiencies in production that offset the loss of profit margin, so "poof", out went the dollars.