I can't think of any examples where someone has introduced something at a loss and then later started making profit on the device by increasing retail pricing.
In the 1970s, SunTour and Campagnolo totally dominated the bicycle component market, SunTour on the low end, Campagnolo at the high-end, professional level. Don't laugh, that is a multi-billion dollar business.
Shimano came into the market with equipment priced at or below SunTour level and of equal quality and far better functionality than Campagnolo, selling at a loss for long enough to become the dominant supplier. SunTour is either gone or a very small niche player, Campagnolo is still there but a pale ghost of its former glory, and Shimano components are perhaps the costliest (and best performing) available.
tanstaafl.
Previous Topic
Index
