If your competitors are stupid...

In business, I would have thought normally this would be a positive. I mean heck.....if your competitors are stupid you benefit all that much more (providing you're not stupid). However, in dscussing pricing theory today, we discovered that if your competition prices a certain way you may not have much choice.

Here's what I learned today in class from the professor: "Pricing on the basis of cost is ass backwards. And if your competitors are stupid you're screwed!" Good to know. Good to know.