No, what will happen is businesses will stand their ground and the good ol' discount business will soon be out of business. People have a tendency to look at lower prices, discounted prices lacking in either quality or service.
We tried "discounting" some of our services to clients. Guess what??? Business actually declined. Instead of reverting back to our normal fee structure which was industry standard, we bumped it to industry plus 15%. Business became brisk thereafter and we exceeded our projected growth by 31%. Customers and clients can be strange in their purchasing practices. Why anyone would play $15K to 18K for a service you can get for $9.5K is beyond me.
BTW...over 80% of all businesses are small businesses. We are not your local Walmart. We don't offer "Everyday Low Prices."
I knew some one who bought a house for an absurdly low price because she was the only one to respond to the newspaper ad. Apparently everyone who read the ad assumed it was a mistake - she did too, but decided to check it out anyway.