A simple test I use to often refute that price will give you a linear scaling advantage is asking myself: "If I made this $0, would I quickly increase the number of users by 10x?" Often the answer is a fractional versus multiplicative improvement.
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Yes!! Consumers attribute price to value AND value to price.
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Now apply this to
$COST -
Costco is the only retailer I pay an annual fee to shop at. I also trust their product selection far more than another other big-box. Cost (of membership) = value
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Agreed much more interesting. Also sometimes elusive as different people and different companies have vastly different expectations and definitions for value.
Hvala. Twitter će to iskoristiti za poboljšanje vaše vremenske crte. PoništiPoništi
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People always get used to the discounts and not to the product - specially true for commodity products (or products with substitutes).
Hvala. Twitter će to iskoristiti za poboljšanje vaše vremenske crte. PoništiPoništi
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You could shorten this to, “Competition is for losers.” - Peter Thiel
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Hvala. Twitter će to iskoristiti za poboljšanje vaše vremenske crte. PoništiPoništi
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True, and this value advantage can be with either suppliers or customers. A durable cost advantage can be a powerful moat and drive strong profits even as you compete on price to sell. Differentiated cost/commodity price is the flip side of differentiated price/commodity cost.
Hvala. Twitter će to iskoristiti za poboljšanje vaše vremenske crte. PoništiPoništi
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