Quote:
Originally Posted by rixte
That's pretty much how Amazon got it's start, though - cornering the market on traditional books by extremely low prices - something like 30% off of everything. Once they had that, they started raising the prices - first to smaller discounts such as 10% off and now there are a great deal of regular mass market paperbacks that are full price.
They took a deliberate loss for years just so they could corner their position in the market and it paid off.
|
Yep. Amazon was in business for something like 6 or 7 years before they ever made a profit. Jeff Bezos said a number of times that it would happen eventually, but that profitability wasn't one of their goals at the start. They just needed to outlast the competition by undercutting them. And it worked.