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0 pointslotsofpulp2y ago0 comments

I would say the opposite. Consumers frequently reward the business models that do whatever it takes to lower prices in the short term, often sacrificing the long term.

It is a constant struggle to convince people that your higher quality product/service is worth the extra cost, and obviously, many times it is not.

But the formula for operating a successful, long term business is not as simple as “output the best quality product or service you can, and you will be rewarded”. It is more like “output the best quality product or service you can relative to prices of competing sellers, and at prices your clientele can afford”.

Which may or may not include sellers that have access to much cheaper money (VC, bigger companies with other revenue streams, etc), or sellers operating in different jurisdictions with lower costs.

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sarchertech2y ago

It’s not that consumers don’t reward quality. It’s that more consumers reward lower prices, and once outside money is involved you have to chase growth instead of steady profits.

Family owned businesses are often able to maintain very high quality. They’ll just never make enough to satisfy people looking for huge returns, which is nearly anyone who doesn’t have some deeper connection to the company.

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