michaelcarraher Once again, a business is willing to drive away customers it has to get customers it doesn't have. And, it's an excuse to raise prices.
Maybe not. If its customer base is shrinking, then it may not be worthwhile to go out of their way to keep the existing ones. There's a business practice that has a number of terms; I personally prefer the "downward spiral of death." The basis of it is that, in the face of shrinking business and/or greater competition, a business tries to lean down. As long as it cuts down on inefficiency, that's fine. But when it goes beyond that, then they will be cutting out things that appeal to some of the customers, without attracting new ones. So the customer base continues to shrink, causing them to lean down more, which causes the customer base to shrink more, leading to, well, a downward spiral of death.
The other choice is to make fundamental changes in the business model. Of course, there is never a guarantee that this will work, but trying a solution that might work is generally superior to trying a solution that is guaranteed not to work. However, the downward spiral of death is still attractive, because it is psychologically greatly preferable to go out of business and being able to blame outside forces than it is to go out of business because you made a mistake.
post edited by bartl - 2012/10/15 12:14:50