That is also something that would allow a competitor to come in to outseat their dominance. In fact, charging 5% instead of 30% would make it much more difficult for competition to develop because it would be next to impossible for somebody to penetrate into the market by offering a lower rate that’s only viable with huge volumes of sales. Usually, offering unsustainable prices is a way that a dominant player achieves a monopoly. If they have big cash reserves, they can run at a loss until their competition dies out.
That is also something that would allow a competitor to come in to outseat their dominance. In fact, charging 5% instead of 30% would make it much more difficult for competition to develop because it would be next to impossible for somebody to penetrate into the market by offering a lower rate that’s only viable with huge volumes of sales. Usually, offering unsustainable prices is a way that a dominant player achieves a monopoly. If they have big cash reserves, they can run at a loss until their competition dies out.