"JoeSpareBedroom" > wrote:
> "wff_ng_7" > wrote:
>> Are you suggesting that you would be justified engaging in deceptive
>> practices because your costs go up? If you can't find an honest and
>> straightforward method for covering your costs, you deserve to go out of
>> business.
>
>
> Scenario:
>
> 1) You need X amount of profit to stay in business.
> 2) There's a price increase in a raw material you cannot control. A big
> increase.
> 3) You know your $2.79 product won't fly at $3.29.
>
> You seem to have huge amounts of business acumen. What would you do?

The problem is you cannot base a long term strategy on deceptive practices. The
corporate graveyard is littered with the remains of businesses that lost the
trust and respect of their customers.

I recall one major change in warranty policy in a company I worked for. They
changed the terms such that onsite repair was no longer covered during the 90
day warranty term. This was to encourage the purchase of maintenance contracts.

Sure there was still a warranty. But on a $100,000 piece of equipment, who is
going to do parts exchange by mail. No one could afford the downtime.
Essentially the price of the equipment was raised by the cost of 90 days of a
maintenance contract.

The marketing people thought they were being very clever. Unfortunately the
sales force didn't think so much of it and rebeled. They knew the customer's
trust was more valuable to them than the increased profit. They refused to tow
the company line.

In the end, the company went under. Not as the result of any one thing, but
losing the customer's trust and respect was a significant part of it.

--
wff_ng_7 (at) verizon (dot) net