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| p.4 #10 · Camera producers death spiral |
Lee Saxon wrote:
It is unethical to charge more than parts + materials + R&D + moderate profit margin, even if the market is happy to pay it.
On face value, maybe.
In real life, no. If you don't maximize your profits, competitors who are more willing to screw customers will gain market share, attract investment dollars, and kill your company right along with your ethics.
This is something a lot of people don't understand. Every day there are lots of good companies that fail, not because they aren't profitable, but because their competitors are more profitable and the good guys get squeezed out of the market.
I work in the real estate development market. Competitors who build shitty housing can out-bid us on any given development parcel because their margins are higher. We have to be very smart to survive and, even if we're smart, our products will reach far fewer people because we can't grow as fast --because we pass along more value to our customers. In the grand scheme of things, we need ethical companies to succeed in the face of unethical competition --even if in the short term they have to maximize margins to do it.
The challenge is to continue to provide value to customers while maximizing profits so you don't get eaten by the companies that don't provide good value to customers. A fine line to walk...