Monday, October 8, 2012

Low-ball-game

Sales people sometimes offer their products and services at the lowest possible price (even below cost at times) and then hope that they can make up their lost margins on possible additional or recurring sales. Nothing wrong with the strategy if overall you can still cover up your cost and make a healthy profit. But at times vendors go overboard on this, leading to poor after-sales-support (not enough money left for support)
and huge losses  (resulting even in a shutdown).  Hope you have your checks and balances in place to avoid low-ball-failures.

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