I Don't know how they do it! Our competitors have undercut us by 10 % percent on the price of our latest model. There is no way will be able to compete against that. We're barely breaking even with the present prices.
These price wars are disastrous for our bottom line. If they're charging 10 % less than we are, we've got to find a way to lower our price while keeping our profit.
Profits are almost nonexistent now, we can't beat their price. How do they keep their price so low?
We can try to lower our cost of production then. We need a price that we can compete with, something comparable with the competition.