The Learning Curve Pricing: Costs will go down, drive prices down to grow market

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Learning curve pricing is a strategy that focuses on starting with low prices to boost volume and accelerate production learning. Initial high prices typically hinder demand, delaying manufacturers from achieving maximum capacity and optimal yields. Instead of passing high production costs onto consumers, companies can invest in lower pricing to enhance competitiveness and market share. By continually reducing prices, manufacturers can both drive sales and improve profitability as production efficiencies increase over time. This approach not only allows for faster learning but also positions a company to capture market leadership, even in the face of initial skepticism from the industry.

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Episode Sources: https://docs.google.com/document/d/1rQMgQDY5c3Fs5DsjB4cZHVZGdhN4kK-6HapO_r7pjyQ/edit?usp=sharing

Carve Outs:

Ted Lasso (Season 1): https://tv.apple.com/us/show/ted-lasso/umc.cmc.vtoh0mn0xn7t3c643xqonfzy
Greek: https://www.imdb.com/title/tt0976014/
Who is Michael Ovitz?: https://www.amazon.com/dp/B07B2HS77M/

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