3 ms·
I know that the evidence in this case is very clear, and that consistent, low prices didn't work. In fact I think there are a few instances of other people atte
by Traster 7y ago
I know that the evidence in this case is very clear, and that consistent, low prices didn't work. In fact I think there are a few instances of other people attempting similar strategies like Brandless. But Intuitively I feel like there must be a place for the consistent low prices model. Maybe intuition is just dead wrong in this case, or maybe we're just waiting for some visionary to turn up and everyone will be talking about how crazy it is no one managed to do that strategy before.
- agumonkey 7y agoProbably depends on the culture. I'm a cheap "tightwad", I don't like price games, I don't like browsing to find which product is the best (because all brands spends money on trying to look better and hide issues) etc etc But I admit it would cut the usual "deal" hormonal hook.
- gmac 7y agoI guess the standard discounting approach means that people who care a lot about low prices can get even lower prices, because to they are to an extent cross-subsidised by people that don't care. In the always-low-prices model, no cross-subsidy is available, so you lose a lot of the people who care about low prices, and you don't gain many of the people who don't care because, well, they don't care.