race to the bottom
A “race to the bottom” is when companies keep dropping prices to beat each other. It can work for a moment, but eventually it can hurt quality and make it hard for businesses to survive. The idea is that you need a sustainable price level, not just the cheapest one.
A “race to the bottom” describes a market dynamic where businesses keep lowering prices to win customers, often by cutting margins or quality. In automotive retail and parts distribution, this can lead to reduced service capability, fewer investments in inventory/tech support, and long-term instability. The speaker frames it as unsustainable because it can’t support the business “on the other side” of the downturn.
Hear It Discussed
"and once other people have it, it could turn into a race to the bottom as well, unless car companies just look the other way"
Tesla's A "Legacy" Car Maker Now, Who'll Be Hands Free Next, Polestar & TRX vs Raptor Auto Buyers Guide Podcast
"No, it's not. It's a race to the bottom to sell these cars quickly in hopes that you make up by coming over this larger amount of money coming in, having done it."
Fixed Ops Friday w/ Don Hall, Morgan Abeyie, Daniel Negalha | Daily Dealer Live Car Dealership Guy Podcast
"faster than anybody else. That's a race to the bottom. Like you're just gonna make a time attack car on accident, right?"
TOP FIVE Sub $15k Track Day Cars You Can Buy Right Now? Very Vehicular
Episodes Mentioning "race to the bottom"
Tesla's A "Legacy" Car Maker Now, Who'll Be Hands Free Next, Polestar & TRX vs Raptor
Auto Buyers Guide Podcast
Volkswagen's drastic cuts, expensive Chinese cars and Skywell leaves UK with Sam Zales - episode 266
Car Dealer Podcast
China, Tariffs & the Fight for the Future of Automotive
Automotive Informants
The Waiting Game
I Speak Jeep
Fixed Ops Friday w/ Don Hall, Morgan Abeyie, Daniel Negalha | Daily Dealer Live
Car Dealership Guy Podcast
Lookers staff claim they face 'fresh threats of redundancy', Autotrader customer advisory groups take place, and Swansway's impressive results – with Sandy Burgess, episode 255
Car Dealer Podcast
TOP FIVE Sub $15k Track Day Cars You Can Buy Right Now?
Very Vehicular
Cargiant to close, £100k Chinese EV launches, and Norton Way's profits slip further – with Craig Walker, episode 254
Car Dealer Podcast
Guest Show #001 - Andrew Cohen VP Of Operations at MetroVac
Clutch Culture Podcast
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