Are dirt-cheap prices here to stay?

Flat TVs are marked, move, and flights between the coasts have a neighbor below $ 120. Forget the cell phone accounts, prepaid expenses, as conscious consumers scramble for cheaper fares.

For companies trying to persuade consumers to spend, profit decline severely. But even more to worry looms: What happens if prices become the norm?

Go to the Americans' attitudes towards consumption and the economy could mean a loss of pricing power for companies, which remain long after the recession ends. "It's much easier to descend than the price they get," said Eric Almquist, a global leader in consumer awareness and to Bain

Consumers reluctant to spend on discretionary items such as holidays, restaurant meals and clothing. Where they spend, they expect big deal, and are willing to spend time and effort to find them. This shift is aiding in the Internet, which increases the competition among retailers in part by providing consumers the information they need to find the lowest prices.

Technology has changed the retail dynamic in obvious ways, especially with regard to things like TVs and personal computers. The average price of PCs fell 14.3% in the fourth quarter of 2008, but down in the market competition, as Acer has challenged companies to low-cost netbook PC.

Even Apple, long the envy of his rivals for fat profits, have now been forced to adjust their business models. Prices for his IMAC computers and media players, IPod is now over, but sales are still declining. Sales of both iMacs and iPods dropped 16% in February, according to NPD Group, a provider of marketing research.

"This industry, which, basically, people have been trained to expect the price will come down", Almquist said.

Manufacturers of electronics, also squeezed the fact that they can charge on the decline. Global television goods, for example, dropped from 5% in the fourth quarter, to 57 million units, according to market researcher Display Source. Prices for high-definition TVs come down, even as they capture a large share of the total market, which shows that even the most technically advanced products could become commodity items.

Brand differentiation profits, and will build a more tightly around intangible assets. Favorable prices contributed to Amazon.com 'S recent financial strength, but also in retail trade also benefits from the stellar customer reviews.

Innovation can also help to fatten profits. Dell is looked forward to his new $ 2000 Adamo laptop, which comes on the market on Thursday. At 14.6mm thick PC promoted as thinner than Apple MacBook Air.

Nevertheless, little evidence that prices in many industries will regain their former weight after the recession ends.