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> How often are customers really given that choice? You and your competition produce two equivalent products. They sell theirs for $100: do you feel confident
by pif 4y ago
> How often are customers really given that choice?
You and your competition produce two equivalent products. They sell theirs for $100: do you feel confident in pricing yours at $110 and base your commercial copy on "We rely on a more robust logistic chain in case of a world-wide catastrophe"?
- falcolas 4y agoThis isn't asking the customer to make a choice, it's asking a businessman if they're willing to invest in their business. And it is an investment, not an ongoing significant cost. Once you have a local surplus established, you can simply buy what you use going forward - the same as any other JIT manufacturing process - with a minimal ongoing cost for storage space. As such, a businessman who wishes to invest in the in the longevity of the business over maximizing this year's profits would be happy to sacrifice some profit for the ability to remain solvent in the next supply chain breakdown. Because there will be another one.