Every company operating on that basis is a busniess waiting to be disrupted by a cost-plus competitor.

The company competing on cost plus is wasting resources by solving problems that arent very profitable to solve

regularfry 5 hours ago | parent | prev | next [-]

Every business still operating on that basis has a moat somewhere else.

Yes this. Either have a moat or be a commodity. Commodities are cost plus

	▲	chaboud 4 hours ago \| parent [-]
		In a market with perfect price discovery, sure. However, over the years I have learned that even the best products for the job can (and will) lose without the right marketing, sales, distribution, etc. Sometimes the entrenched default that collects an inertial premium doesn't get disrupted... But, yes, anyone without a moat who operates with a presumption of retention runs the risk of being knocked off of their perch; their fate left to others.

As is every individual earning more than median income.