Lengthen Your Product's Life Cycle
No service can afford to do the same old things year after year, though sometimes this innovation amounts to just a change in terminology. For manufacturers, a new type of product--with high demand and no competitors--will allow premium pricing. An old war-horse--with established popularity, no start-up costs and no requirement for ongoing promotion--will allow moderate pricing to produce a steady profit stream (the much-admired "cash cow"). This principle also applies to services or novel wrinkles on established services to maintain interest and prices.
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