Hi Jack;
Boy, you have a way of starting really great conversations...
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But.. How often have you seen a quality product disappear because it was forced out of the marketplace by cheap products? I mean cheap and not inexpensive.
I see a catch-22, the consumers are keeping the demand high for low price products and business owners are fighting to maintain a market share that can generate sufficient cash flow to survive.
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Gary pointed out that price is the 4th factor in a consumer's mind. I agree. I read a study (would have to re-find it) in which consumers were polled as to what was the most important factor in buying. The company that commissioned the study wanted to prove that people buy on price. The study proved them wrong. Price was not the number one issue.
A good case in point - there are lots of companies that have not been forced out by cheap products. Rolex, Gucci, Rolls Royce, etc.
You know what I actually think happens? I think business owners often don't know how to market. When we don't give a consumer a reason to justify the higher price, they fall back on price. And that's a shortcoming of the business, not the consumer.
Here's an example. Two health products. We'll call them "Product A" and "Product B" Let's say both products are detox products.
"Product A" costs $25. It costs that much because it contains "ingredient x" which is expensive. "Product B" is a cheapie imitation and costs $10. It does not contain "ingredient x" (because it's expensive) but uses "ingredient y" instead. "Ingredient y" is known to cause health problems, but has not been banned. Yet.
The consumer looks at the two bottles. Both say "detox" - one is $25 and one is $10. If they do not understand the difference in products, they WILL buy the cheaper one.
Whose responsiblity is it to educate the consumer? The seller of the $25 product. But what if the seller can't market their way out of a paper bag? They'll put it "on sale" to try improve sales. And what they're doing is feeding into the concept that price is the factor.
We already know that very few people take the time to do their due diligance. They just read what the company tells them. (I won't even get into that here... lol)
Thus, I believe it is actually companies that don't know how to market their own goods that are driving the price wars.... not consumers.
: )
Linda
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