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Loss Leaders and Small Businesses Don’t Mix — 1 Comment

  1. This is also very apparent when you look at software plug-in enhancements. In fact, low price loss leaders is the most important sign of poor support and low quality. You follow this up by looking at the bug reports and errors found in many low price softwares.

    On the other end of the spectrum is ‘premium brands’ with higher prices where suppliers will try to protect their position by raising quality: Mac vs. Windows, John Lewis vs. Tesco, Gucci vs. M&M – quite simply, it is a price to quality correlation.

    If the money does not matter to you… (if only) then you will tend to purchase quality. For this to be so you need to offer quality in what you offer so you can afford the input quality which makes up what you offer.

    It is a pyramid you must climb to offer better quality.

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