As Customers Form Habits Around A Product They Become Less Sensitive to The Price

🧶 Tags:: #literature_Notes #Quotes
🗃 Resources:: Hooked (2014)
2024-11-09 - 20:48

Berkshire Hathaway CEO Warren Buffett once said, “You can determine the strength of a business over time by the amount of agony they go through in raising prices.” Buffett and his partner, Charlie Munger, realized that as customers form routines around a product, they come to depend upon it and become less price-sensitive.