Law Of Diminished Caring
The less that an organization cares about the product that it sells, the less the customer cares about the product, or whether the organization goes out of business. Its a standard complexity of life; when someone doesn’t care about themselves, no one really cares about them.
Take how some big box stores advertise their “lowest prices available.”
No one is going to those stores for great service. They expect nothing but large, vacant warehouses with large shelving, and the cheapest pricing around. If your price is a $1 higher than what your competition is offering, you’ve lost your customer.
It’s a zero-sum game.
This is no different than entertainment options.
The moment that you navigate toward discounted price points, your customer starts evaluating whether you are the cheapest form of entertainment. That means if the bowling alley or the movie theater is cheaper on average than your baseball game, then you lose out to those two options.
Everyone cares when the local drug store or butcher is in financial trouble. They care because they know that person behind the counter. They know because they have great memories of times visiting.
If a Wal-Mart or Target leave a location tomorrow, the only ones affected are the bargain hunters. Everyone else has an alternative location to head to.
That’s the chasm of customer caring.