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> It's easier to fix issues and deploy new or experimental technologies in a period of easy money and customers flooding your doors than it is when you're skati
by __blockcipher__ 5y ago
> It's easier to fix issues and deploy new or experimental technologies in a period of easy money and customers flooding your doors than it is when you're skating by on thin margins.
But this describes to me the "sell $1 for $.90" strategy, not the other way around. IOW I think it's an argument for why selling cheaply is often not a good idea.
And wrt the parts of your grandparent's comment you quoted, it's not really accurate to call it "growing your customer base" when you're growing it via giving away unreasonably cheap services. It is often the case that the majority of customers acquired in such a way won't stick around when prices are later increased to a realistic level.
This is why in general I advocate for businesses to price well, not cheaply, and to try to get real growth - that is, people willing to pay the money your services are actually worth. There are times where "acquire new customers at all costs, even by giving unrealistically good bargains" is the optimal strategy, but I think it should be something done 10% of the time rather than the 95% of the time it's done in our industry.