There are, generally speaking, two business models that work. The first is to provide customers with the lowest prices. The second is to convince customers to pay higher prices. Companies like Costco, Amazon, and GEICO use the first model while companies like Apple, Starbucks, and Nike use the second. Virtually every business lies somewhere on a spectrum between these two extremes.
Costco: A Wonderful Business But Priced For…
There are, generally speaking, two business models that work. The first is to provide customers with the lowest prices. The second is to convince customers to pay higher prices. Companies like Costco, Amazon, and GEICO use the first model while companies like Apple, Starbucks, and Nike use the second. Virtually every business lies somewhere on a spectrum between these two extremes.