[bchapman]

Discounting is a strategy, that when used properly, works properly. You should discount when you want to create a special offer to generate interest, to tie in with a marketing program and make a splash to get new customers, or to move some excess inventory. These are all good reasons to discount.

IMO, it's not a good idea to discount because you suspect your customers don't have enough money. You either need to increase the perceived value until it becomes compelling enough to trigger a purchase, or you need to introduce a lower cost / lower value product if it's the absolute dollar amount that is the stumbling block. Random discounting just makes your company look like it's in trouble or admitting the product wasn't worth what you originally asked for.

Besides, you should act on real figures, not media doom and gloom. The media (and that includes you, flyingsolo) are only interested in selling ads. To do that they need you to pay attention. They'll string out the 'financial crisis' line for as long as it attracts eyeballs. I'm not saying there aren't people suffering as a result of job loss, reduced income or home foreclosure, I'm saying pay attention to your facts and figures rather than headlines and emotions.