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If all your customers are flocking to the undercharging competitor, you're out of the market anyway and your costs are effectively zero since you don't have any
by Manuel_D 3y ago
If all your customers are flocking to the undercharging competitor, you're out of the market anyway and your costs are effectively zero since you don't have anyone filing claims. There's no practical scenario where the competitor, which is losing money on each customer in aggregate, lasts longer than a company with no customers.
- sokoloff 3y agoPicking up nickels in front of a steamroller can appear profitable for a shockingly long time, as the traders using the "I'll just naked short VXX for easy money!" periodically find out.
- Invictus0 3y ago"costs are zero" Payroll? Overhead? Marketing? Rent? This isn't a thought exercise, there are real costs associated with being in a certain business.
- Manuel_D 3y agoAll of which the competitor also has to pay, on top of losing money on each customer.