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Louis Rossmann talks about this in the context of his old electronics supply company. One of the reasons he started that company was that the suppliers he had
by scottLobster 5y ago
Louis Rossmann talks about this in the context of his old electronics supply company. One of the reasons he started that company was that the suppliers he had previously worked with had horrible customer service, and a lot of people he knew professionally complained about it. Thought he found a niche in the market.
So long story short he created a supply company with dedicated customer support, but his prices were correspondingly higher (those extra salaries have to come from somewhere). Most people just went with the cheapest option every time, one of the reasons that business failed.
- thereddaikon 5y agoPeople are stupid. They don't value certain value adds like good support until it becomes important. But more often than not by that point its too late. People are short sighted and value price over everything else. This is ultimately why consumer protection laws exist. A person is smart, people are stupid and "the market" can't be expected to always act in its own best interests.
- jareklupinski 5y ago> professionally complained If I told my cost center that I went with a more expensive vendor because "they were friendlier", that would pretty much open an investigation...