Cheap is one of the only remarkable items that never seems to run out of appeal. For just about any repeatedly purchased item, all other things being equal, the cheap one will gain market share. The problem with cheap is that once you start, your competitor will likely play the same game. In an incremental price war, how will one player beat the other and still win economically?

IKEA can do it.
Wal-mart can do it.
Can you?

Purple Cow by Seth Godin