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Nov 14, 2013
So Wally went for coffee during the middle pane?
It usually takes me longer
+18 Rank Up Rank Down
Nov 14, 2013
It depends on the product, the competition and the economy. When VHS/Beta tapes from the movie studios cost $80 each, and the movie studios were suing the VCR makers and the rental parlors, income was modest. When E.T. was released for $19.99 the movie studios FINALLY realized they could make a LOT more money by selling cheaply replicated intellectual/artistic product by the boatload.
+38 Rank Up Rank Down
Nov 14, 2013
A sometimes viable strategy can be to set the initial price too high and initiate a sale after a while. The "sale" price will be the normal price, but people will still buy it....both metphorically and literally.
Nov 14, 2013
Any loss in profit is easily more than made up for by reducing benefits.
Meanwhile mgt is happier, the board is happier, the stock holders are happier
Seems like a no loose for everybody that counts
+35 Rank Up Rank Down
Nov 14, 2013
If you have greater financial resources than your competition, then a limited period price war can be good strategy. Your weaker competitors will be forced out of business, at which point you jack up your prices and take advantage of your monopoly status.
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