This is the reasons Macys can continue to exist in a world of Wal-Marts, and why Harbor Freight Tools hasn’t driven Husky, Kobalt, and Craftsman out of business (or even taken much of their market share, at all).RTWT.
The thing that these simpletons cannot comprehend is that the free market brings with it this little thing called “competition.” You have to stand out from your competition in order to succeed. Yes, one of the ways to stand out from your competition is to offer a less expensive product than they do, but that, in and of itself, will not cause you to succeed.
Otherwise, Yugo would not have gone out of business in the US, and Kia would not be undergoing a massive re-branding and re-evaluation of their product line, pushing to become a brand more closely aligned with luxury than cheapness.
03 November 2014
Why the profit motive beats the public sector
A bit of ammunition to fire at those who think a bloated, unmotivated government will do anything better than people working in their own self-interest: