For better or worse, I agree. If you aren't ripping them off you're leaving money on the table, but if you go too far and piss them off they're going to take away all the money on the table with them.
You're leaving money in their pocket that you might get later
How do you quantify loyalty? Because it seems to me that it's very easy for individuals to prioritise short term gains at the cost of medium and long term losses due to trust erosion
I wonder how much client satisfaction and trust would be worth on the quarterly report, if it could be calculated. I think it would be immense for most companies
The most effective business is getting all the money on the table and making your client happy. Thusly the art of business, ripping off your client without pissing them off.
Absolutely nobody gets ahead in business by selling wares cheaper than what they could have gone for, unless you are deliberately underselling the market to gain share by sheer force of will. Likewise by selling wares higher than what they could have gone for, clients will just look elsewhere because you're just another one of many merchants.
Explain Costco then.
I've seen the same numbers in multiple articles state that 72% of Costco's profits came from the membership fee in a year that they saw record sales.