Businesses pay price for discounts

Price discounting by UK businesses during the recession has led to dents in profit that could top £20bn, according to a research by KPMG. The survey of 200 UK businesses found that more than 50 per cent had made discounts, with 49 per cent entering direct price wars with competitors. Two-thirds of those polled saw recession-led discounting as a contributing factor to reduced profits, demonstrating the impact of reactive pricing strategies on business performance.