And yet that's precisely what lots of businesses do: raise the prices, cut the wages, drop the product quality. Oh no, the customers start losing the brand loyalty and go to the competitors, why on Earth, those ungrateful pigs!
It seems to be especially popular in the street food business and food industry in general over here: someone thinks that surely one can produce decent <insert whatever here> at reasonable cost and earn some good profit from it, and indeed they can, the customers are happy, the business is growing a-a-and then something happens and the market self-corrects: the price grows to the level of the competitors', and the quality drops to the competitors' level too, now the "playing field" is level again (all products are more or less equally mediocre and equally expensive), wait about a year for another entrepreneur to rinse and repeat this cycle.
There must be some objective reason why that happens though I am really not sure what it is. But whatever that reason is, it seems to have been working pretty much without exceptions for the past ten years at least.
It seems to be especially popular in the street food business and food industry in general over here: someone thinks that surely one can produce decent <insert whatever here> at reasonable cost and earn some good profit from it, and indeed they can, the customers are happy, the business is growing a-a-and then something happens and the market self-corrects: the price grows to the level of the competitors', and the quality drops to the competitors' level too, now the "playing field" is level again (all products are more or less equally mediocre and equally expensive), wait about a year for another entrepreneur to rinse and repeat this cycle.
There must be some objective reason why that happens though I am really not sure what it is. But whatever that reason is, it seems to have been working pretty much without exceptions for the past ten years at least.