A product that represents a clear technological advance over competing products can generally command a high price  Surprisingly, perhaps, <b> the strategy to maximize overall profit from a new product is to charge less than the greatest price the market will bear </b>  Many companies charge the maximum possible price for such a product, because they want to make as much profit as they can and technological advances tend to be quickly surpassed
The drawback is that <b> large profits on the new product give competitors a strong incentive to quickly match the new product' s capabilities </b>
The first presents a strategy for achieving a certain goal; the second presents grounds for preferring a different goal.