It depends. Obviously you’re in the business so you probably know it better. Perhaps you are in control of certain key distribution channels that prevent competitors from coming in and thus can charge the higher prices? You also seem to be suggesting that picture frames are simple commodities and the customer only cares about the price and if you keep your price as is, people will just buy from the other people. I’m not sure if this is entirely true, so I would suggest looking at that assumption.

The problem with commodities is that it is a race to the lowest margins and lowest price, and does not usually leave room for any sort of premium profits, and if you’re in direct competition with the likes of Wal-mart, watch out.

My suggestion? Either make some sort of picture frame that can be marketed and sold at a premium price by adding perceived value to it, package some other product with the picture frame or get out of the picture frame business.