F: 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.

F: 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.

M: Profits are alomst nonexistent now, we can't beat their price. How do they keep their price so low?

F: We can try to lower our cost of production then. We need a price that we can compete with, something comparable with the competition.

M: You really think we can make it? I don't have much faith in our ability to lower the price again. We're no match for them, the competition will beat
us hands down.