answer: #Person1# and #Person2# are worried that they cannot compete against their competitors in terms of price. #Person2# suggests lowering their cost of production, but #Person1# thinks it's hard.
documents: #Person1#: I Don't know how they do it! Our competitors have undercut us by 10 % percent on the price of our latest model. There is no way will be able to compete against that. We're barely breaking even with the present prices.
  #Person2#: These price wars are disastrous for our bottom line. If they're charging 10 % less than we are, we've got to find a way to lower our price while keeping our profit.
  #Person1#: Profits are almost nonexistent now, we can't beat their price. How do they keep their price so low?
  #Person2#: We can try to lower our cost of production then. We need a price that we can compete with, something comparable with the competition.
  #Person1#: You really think we can make it? I don't have much faith in our ability to lower the price again. We're no match for them, the competition will beat us hands down.