This is a memo to all business owners large and small: pull your heads out of your asses and stop racing to the bottom. You cannot make a sustainable business by selling goods and services at a loss. You must — completely — ignore sales data gained by holding fire sales, that data is irrelevant to your normal operations.
Ben Nails it in this post. I don’t know if it’s the impact of startups who all end up being sold and shut down or what, but apparently business people seem to have forgotten what all they learned in b-school. While getting your education in business, it’s all about finding profitability and EBITDA.
The tech world is all caught up in what’s sexy and flashy, not profitable and sustainable. That needs to change, because the end result of the race to the bottom is the destruction of what could have been amazing value if the startups had invested in finding a way to be profitable instead of just building something cool.