Earlier quoted context omitted.
The dumbest and most obvious of realizations finally dawned on me after trying to build a software startup that was based on quality differentiation. We were sure that a better product would win people over and lead to viral success. It didn’t. Things grew, but so slowly that we ran out of money after a few years before reaching break even. What I realized is that lower costs, and therefore lower quality, are a compe…
You're laying it out like it's universal, in my experience there are products where people will seek for the cheapest good enough but there are also other product that people know they want quality and are willing to pay more. Take cars for instance, if all people wanted the cheapest one then Mercedes or even Volkswagen would be out of business. Same for professional tools and products, you save more by buying qualit…
I would argue this is a bad example - most luxury cars aren't really meaningfully "better", they just have status symbol value. A mid range Honda civic or Toyota corolla is not "worse" than a Mercedes for most objective measurements.