On 13 Jan, 2005, at 10:19, Dubin, Elisabeth wrote:
I think it's less of an "ignoring" of existing customers and more of a
business strategy.

"Correct-o-mundo" -- it's called "disintermediation."

This is a technical term from the financial community:
"Withdrawal of funds from intermediary financial institutions, such as banks and savings and loan associations, in order to invest in instruments yielding a higher return at the same institution."


This the reason why things like CDs or cell-phone contracts have all kinds of "early termination" penalties.

This same premise applies to the income stream of any business.

A new customer attracted because of a lower price is new income, but an existing customer who pays less represents a loss of income.

T.T.F.N.
William H. Magill
[EMAIL PROTECTED]
[EMAIL PROTECTED]
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