Dear Dr Vasudeva Reddy,
Prices of products or services always should be left to the market to decide. It is the competition that decides the pricing. May I remind you the famous saying "Everything is worth what its purchaser will pay for it" by
Publilius Syrus (~100 BC, a Latin writer of Maxims).
If some company is so confident of products or services, that company will never come down on price. Classic example is telecom major Airtel. Notwithstanding the low tariffs by other companies, this company has continued with the old tariff. Now whether this decision was right or wrong can be checked by scrutinising the balance sheet of that company. Hitherto they proved themselves right and the company is still head and shoulder above others. Will it remain in future also? It remains to be seen!
Another example is that of logistic major FedEx. Couple of years ago what local companies offered at Rs 400/- the same service FedEx offered for Rs 1,600/- But then local companies remained local and never became global. FedEx has grown considerably.
Regards,
Dinesh V Divekar