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Originally Posted by Baraka_Guru
Of course, but I think Derwood's point is that people often get hung up on price. If the product is essentially the same, many people would rather pay less—they can do without expertise, service, relationships. That's why big-box stores are so successful compared to the boutiques/independents (who care).
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Sure, I understand his point. But, even a commodity product like gas (additives don't really add value, so gas is gas), one business can differentiate it self from another and command a premium price. I agree, all things being equal I will buy the lower priced item, but my point is that all things are rarely equal and the goal of a small business in a competitive market has to be to add value that others can not. If they can not do that they go out of business, pure and simple.
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If people want a better burger, they don't tend to mind too much that they must pay more for quality. But I don't think it's the same thing when you're looking at more or less the same Samsung television. Consumers are increasingly price sensitive these days.
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Some people have the expertise, the resources, and ability to buy, transport and install a Samsung television, they buy based on price alone. The guy who needs advise, delivery, installation, integration with other items, follow-up, etc., may very well be willing to pay more for the Samsung to get access to the other services.