Price Wars: Does Anyone Win?

I teach a lot of Entrepreneurial classes and one question that is always asked during the session is “Should I reduce my price?”
Of course you can do anything you want, but is it really worth it to lower your prices? There was an article in USA Today in August of 2009 talking about the consequences of lowering prices to bring in business. In the short term it will certainly bring in customers if they want to buy. Long term, you will have to ask yourself, are these the “right” customers?