🚀 go-pugleaf

----------------------------Original message----------------------------
Mitchell Langbert <langberm@maillink.dowling.edu> observes:-

>I have a fundamental quality question, based on one of the exam
>questions discussed earlier.  Why hasn't an entrepreneur addressed the
>high variability of quality in the used car market?  For example, if
>an expert mechanic only sold high quality used cars, trained others to
>reduce variability in used cars that are sold, wouldn't there be a
>viable business because the chief problem with used cars is low
>quality (high variability)?

Its a classic case of the perceived-benefit trap. Most used-car purchases are
price-sensitive rather than quality-sensitive. A vendor selling high-quality
used vehicles at higher prices will in most cases be driven out of business
by the guy down the street selling superficially-identical [but in reality
lower quality] vehicles at lower prices. The customer will always argue
'well i have seen the same car for $2500 less on the lot down the street'

Thats the 'general' case; however there are niche markets [prestige cars,
classic cars] where the product is less price-sensitive; here the quality
end *can* survive; most people argue less about the price when they
are spending $75000 on a 1950's Rolls-Royce or a '68 Porsche Carrera
as when they are spending $1500 on an '85 Honda.

        Peter J.M. Lucas    NERC Computer Services   Swindon   England
             pjml@swmis.nsw.ac.uk    or   g6wbj@gb7sdn.gbr.eu
                A still tongue makes for a happy life.