4 ms·
to go along w/ this--why not enter the market at $5, hopefully serve even a slightly better product, and get your competitor out of business and up your prices
by gremlinsinc 10y ago
to go along w/ this--why not enter the market at $5, hopefully serve even a slightly better product, and get your competitor out of business and up your prices to $7 or $8, still cheaper, but better quality, and you'll stay in business longer, esp. if you knock your competition out.
- HeyLaughingBoy 10y agoIf the competition is already charging $10 but could get by just fine if they charged $5, then that means they have far more capital available than you do and can afford to wait for you to go out of business. It also means they have additional capital to a) Advertise more b) Improve ingredients and taste c) Do all sorts of things to improve the customer experience. In short, there are benefits to charging more from the outset that aren't always obvious until you're playing catchup.