Originally Posted by
lin821
I fail to follow you logic.
Say if I think a restaurant charges a ludicrous price for a plain hamburger, I point it out the price is ridiculous and outrageous, then I share my opinions with the public. But you are saying I should open a hamburger store instead?
Why would I want to run a hamburger store? I am just a smart shopper who knows where and how to shop. I am no competitor or merchant, nor do I want to be one.
Why should I start a competing company whenever I see a company run an open-for-those-who-don't-know-better model?
I agree; you didn't follow my logic.
You mistook my argument as suggesting that you are *obligated* to open a hamburger store in the event the market is dominated by a restaurant with prices that are "ridiculous and outrageous", priced far above the level needed to be profitable. I'm not suggesting an obligation; I am suggesting an *opportunity*. Your savvy ways have alerted you to the fact that the hamburgers could be sold for much less and still yield a profitable business. Therefore, you know that if you *wanted* to make an easy profit, you could start a competing store with reasonable pricing you believe would be wildly popular. Of course, the original store could drop their prices too, but in this type of situation, there's usually plenty of room for both profits and price drops.
In the case of Points.com, I suspect that their costs and the business model dictate that there isn't a lot of room to cut pricing, spend more on customer service, and be as profitable. However, your opinion that there is an "outrageous" differential present could certainly be correct, and if so, you would be wise to act instead of whine.