Everybody loses in a price war
A man makes a widget. And he’s the only one who makes that particular widget. To manufacture that widget cost that man a huge amount of time and money. His prodigious talent is the driving force behind the awesome widget. A company comes to him and says, “Please let me sell your awesome widget! I’ll make sure for every widget I sell for $10, you will get $5.” The man thinks that’s a perfectly fine deal because it saves him the hassle of tracking his inventory through distribution and thinking up marketing plans. Hands are shook. The man returns to his creative endeavors, delivering the product to the middleman. A few months pass. The man hears another knock on his door. “Please let me sell your awesome widget! I’ll make sure for every widget I sell for $10, you will get $5.” Now two middlemen are flogging his product and they’re both Continue reading Everybody loses in a price war