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First off I've gotta say I can take no credit for this analogy. I brought up r/k on a subreddit and this was how one of the commenters looked at it. I just thought it was too good not to share...

 

"Business has known this for a while. There are also two strategies there. High end, high overhead products and low end, low overhead products. Playing the middle ends in disaster. And there is room for both. High end is hard because so much is required and ever more is required to maintain differentiation. Low end is hard because your product is typically fungible or nearly-fungible so it is all up to lowering production costs. Both reproductive strategies will always exist as well as political and business. It really is a principle of life, in all arenas or areas of focus."

 

The more cheap or low end products there are the less inclined people are to buy the higher quality items. The only part that I would disagree on is that businesses consciously know this.

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