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    #1

    remove cost

    It is very difficult to remove cost from a business model aimed at higher-income customers without affecting quality or integrity.

    In the above, does "remove cost" mean "make something cheaper"? I understand the above as saying "in a business aimed at higher-income customers, when you try to reduce cost (make something cheaper), you are bound to sacrifice some degree of quality or integrity (of the product or service)." Is this correct?

  1. charliedeut's Avatar
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    #2

    Re: remove cost

    Hi,

    "Remove cost" means to make something cheaper to produce, not necessarily cheaper for the customer, so what happens when you reduce the cost of something is that you increase the benefit margin.

    charliedeut
    Please be aware that I'm neither a native English speaker nor a teacher.

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    #3

    Re: remove cost

    So when you increase the benefit margin by reducing the (production) cost, it is hard to avoid sacrificing quality or integrity. This is what it's saying, isn't it?

  2. Barb_D's Avatar
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    #4

    Re: remove cost

    I'd like to see more of the passage.

    The fact that it specifies high-income customers suggests that the price of the product might not be a differentiating factor in their product selection, but it usually follows that higher price = more features/better quality.
    I'm not a teacher, but I write for a living. Please don't ask me about 2nd conditionals, but I'm a safe bet for what reads well in (American) English.

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    #5

    Re: remove cost

    I think the point is that high end consumers expect certain things in the products they buy. They want real marble in their kitchens and real leather in their car seats.

  3. Academic Writing's Avatar
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    #6

    Re: remove cost

    Agree with unpakwon's initial response and Dave's interpretation.

    I'd just add that you can never realistically remove all costs (especially for high-end customers). For that reason I'd suggest "reduce costs in a business model" but that's just me...

    As a side note, whether you hyphenate "higher-income" would depend on the chosen editorial style (in APA, for instance, no hyphen would be used. Chicago would and if I remember correctly Oxford would too...been a while since I've really looked at Oxford though). "high-income" would be hyphenated across all styles. :)
    SeriousScholar.com

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    #7

    Re: remove cost

    Quote Originally Posted by unpakwon View Post
    It is very difficult to remove cost from a business model aimed at higher-income customers without affecting quality or integrity.

    In the above, does "remove cost" mean "make something cheaper"? I understand the above as saying "in a business aimed at higher-income customers, when you try to reduce cost (make something cheaper), you are bound to sacrifice some degree of quality or integrity (of the product or service)." Is this correct?
    There are typically five or six major components of a formal business model with cost or cost structure being one of those. In your example however, it is, at least, difficult to determine what the author intends as his/her meaning of "cost", removing cost and the author's understanding of the term "business model".

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    #8

    Re: remove cost

    Here's more context.

    But for our purposes, more important was the fact that 200 million people learned diarrheal disease---which kill 660,000 people in India each year---can be prevented simply by washing one's hands. This form of improvement quickly becomes empowerment, since the better health that results from hand washing adds income (fewer sick days from work)...
    But the benefits don't just flow toward the consumer. As Hart explains in his 1995 book Capitalism at a Crossroads:..., "It is very difficult to remove cost from a business model aimed a higher-income customers without affecting quality or integrity." To compete in BOP markets, a new wave of disruptive technology is required. Take Honda's motorcycles. In 1950s, Honda began selling very stripped-down and inexpensive motorized bicycles in Japan's jam-packed, poverty-stricken cities. When these bikes entered the American market in the 1960s, they reached a considerably larger population than those who could afford Harley-Davidsons. Hart explains: "Honda's base in impoverished Japan gave it a huge competitive advantage in disrupting American motorcycle makers because it could make money at prices that were unattractive to established leaders."

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    #9

    Re: remove cost

    Quote Originally Posted by unpakwon View Post
    Here's more context.

    But for our purposes, more important was the fact that 200 million people learned diarrheal disease---which kill 660,000 people in India each year---can be prevented simply by washing one's hands. This form of improvement quickly becomes empowerment, since the better health that results from hand washing adds income (fewer sick days from work)...
    But the benefits don't just flow toward the consumer. As Hart explains in his 1995 book Capitalism at a Crossroads:..., "It is very difficult to remove cost from a business model aimed a higher-income customers without affecting quality or integrity." To compete in BOP markets, a new wave of disruptive technology is required. Take Honda's motorcycles. In 1950s, Honda began selling very stripped-down and inexpensive motorized bicycles in Japan's jam-packed, poverty-stricken cities. When these bikes entered the American market in the 1960s, they reached a considerably larger population than those who could afford Harley-Davidsons. Hart explains: "Honda's base in impoverished Japan gave it a huge competitive advantage in disrupting American motorcycle makers because it could make money at prices that were unattractive to established leaders."
    How about the old expression, "You get what you pay for".

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