Quote:
Originally Posted by Brian Carlton
Apparently it's too complicated for you. The airlines could not raise prices and they still remain in business. I couldn't have made that more clear to you in the aforementioned post. Sorry you missed it.
Their capability of raising prices is still quite limited. The solution was to reduce costs and increase yield via increase of load factor.
Price is only one factor in whether a company is successful.........or not. Cost is usually the more significant factor.
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Apparently it's too complicated for you.
If price is only one factor among many, implying others are equally important, what happens if a company charges nothing for it's product?
If the burden is increased by X% on the company, that X% doesn't magically disappear -- it has to come from somewhere. Either it gets taken out of the consumer's wallet or out of the supplier's wallet or by increasing efficiency within the business. There are no other choices.