Should you cut prices during a recession?

According to a survey by the National Federation of Independent Business, nearly 30% of small business owners have lowered their prices.

When setting your own prices, consider these ideas:

>> Be flexible - offer a wide variety of pricing options to win over and keep risk-averse customers.

>> Customize - ask your clients what they need, and then change your mix of offerings to emphasize the most affordable.

>> Target customers when they have the most cash. The first week of the month after shoppers have received their pay checks is usually the best time.

Source: Evans, Teri, "Slash & Earn," BusinessWeek SmallBiz.