The following is from a good essay by Alan Weiss on pricing and how you´ve lost control if your buyers are focused on price:
"The key question is this: How is the buyer better off [when the deal is done]?
"The buyer is better off if you´ve created more discretionary time, reduced stress, improved profit, enhanced repute, and enlarged market share."
This is what you need to focus on, says Weiss. Price wars precipitate a negative chain reaction of reduced quality and service, as well as diminishing returns. We reiterate and expand on these points in The 7 Essential Steps to Successful eBay Marketing. We deal with specific eBay contexts.
The Weiss article came from a downloaded PDF I came across, and I couldn’t find it again. There are, however, many equally good articles that cover similar topics on Alan’s site.