Interesting thought and something I overlooked. Originally, when I think of cost reduction I think of doctor visits no longer requiring a physical presence (telehealth), without really affecting the quality of the visit in a negative way. Or I think of increasingly smaller tech that enables us to access the internet and market places from our palms. This kind of price reduction often is coupled with increased value and is caused by technological advances. So it’s different from what you’re talking about. You’re talking about the guy/gal who will sell you a cheaply made car at a lower price than the well-made cars next door. S/He will successfully steal these price-driven customers away. But, what the customers forget is value. In the end, the price driven customer will have paid more over time, while the value driven customer will have been happy paying more upfront, but less over the long haul. Time + Problems = Costs.
