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I can't find any verification, but my dad always claimed Wonderbread did this. Entered new markets with absurdly low prices until local bakers went out of busin
by smokey_the_bear 10y ago
I can't find any verification, but my dad always claimed Wonderbread did this. Entered new markets with absurdly low prices until local bakers went out of business and then raised their price.
- thaumasiotes 10y agoThis one is a little harder for me to believe, since wonderbread has some pretty dramatic quality differences from local bread. They compete, but they don't compete directly and there's a significant chunk of people who would never buy wonderbread even if it was free.
- monkeyprojects 10y agoWonderbread didn't need to take all the market to make the bakery unprofitable, just reduce bakery sales enough (say 30%) to make it unsustainable.... After all profitable only comes after fixed costs are covered. If sales drop below the amount required to cover those fixed costs the business is no longer viable....