I agree with your stance that lower prices will help generate more business, and help bring in new customers to their field. The most imperative thing for this particular business to do is make sure that they operate at a very high level and keep the customers. Although in this particular stance new business is good, it will be pointless to reduce price by this much if no new customers will be retained.
Price reduction is necessary in some fields, especially when the level of competition is extremely high. Making large predictions for the upcoming quarter is good, and helps boost morale within an organization. But, it is important to know your team, and realize if they have the potential and work ethic to take on this heightened work load. An organization is only as good as their leaders.
I am not too informed on this current situation, but I understand the principles of the business strategy they are implementing. I would not personally make such bold predictions if I was the leader of the organization. The only exception I would make is if the organization was very close to extinction. Such a drastic reduction in price seems quite lofty to me, and seems like an unnecessary risk to take.
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