You can only sell what people are buying. In a truly free market, good things will exist at the price set by supply and demand, making the prices exactly that: reasonable.
If I’m one supplier noticing you, another supplier, selling too expensive and/or bad quality products, nothing stops me from “stealing” your customers by simply selling better products than you, or lowering my prices, which forces you and other suppliers to reevaluate your price/quality.
But that’s not how it works. That completely ignores things like barriers to entry, volume and scale, and the fact that people don’t have free and clear information.
When you look at economics the way you’re doing, it’s like looking at physics 101. In a vacuum with no friction. That is not how the real world works.
Source: I have an MBA and 20 years experience working for a global financial institution. Also, I have eyes and can see how things are.
You can only sell what people are buying. In a truly free market, good things will exist at the price set by supply and demand, making the prices exactly that: reasonable.
If I’m one supplier noticing you, another supplier, selling too expensive and/or bad quality products, nothing stops me from “stealing” your customers by simply selling better products than you, or lowering my prices, which forces you and other suppliers to reevaluate your price/quality.
But that’s not how it works. That completely ignores things like barriers to entry, volume and scale, and the fact that people don’t have free and clear information.
When you look at economics the way you’re doing, it’s like looking at physics 101. In a vacuum with no friction. That is not how the real world works.
Source: I have an MBA and 20 years experience working for a global financial institution. Also, I have eyes and can see how things are.