Quote:
Originally Posted by haertig
True. Especially true, since Yugo is out of business! Don't know if that is because they were sold for so little that profits couldn't be maintained, or because they were of such low quality that nobody wanted to buy them no matter how cheap they were. My hunch is it was the latter. Had they raised the price of the Yugo to seek a higher profit margin I think they would have sold even fewer than the two that they did sell.
|
It may even be a psychological point in a way. i.e. "If company x is charging so little for their product then they must not think it's worth very much" and so the customer goes somewhere else for that type of product.