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Every company operating on that basis is a busniess waiting to be disrupted by a cost-plus competitor.
by hobofan 7mo ago
Every company operating on that basis is a busniess waiting to be disrupted by a cost-plus competitor.
- bad_haircut72 7mo agoThe company competing on cost plus is wasting resources by solving problems that arent very profitable to solve
- regularfry 7mo agoEvery business still operating on that basis has a moat somewhere else.
- mayukh 7mo agoYes this. Either have a moat or be a commodity. Commodities are cost plus
- chaboud 7mo agoIn a market with perfect price discovery, sure. However, over the years I have learned that even the best products for the job can (and will) lose without the right marketing, sales, distribution, etc. Sometimes the entrenched default that collects an inertial premium doesn't get disrupted... But, yes, anyone without a moat who operates with a presumption of retention runs the risk of being knocked off of their perch; their fate left to others.
- mayukh 7mo agomarketing, sales, distribution, branding, supply chain, intangibles... can all be moats.. as long as the owner of that moat gets it and others dont
- lotsofpulp 7mo agoAs is every individual earning more than median income.