Arbitrage Quote by Bill Gurley
“If one asserts that buying customers below what they charge them is a corporate strategy, this is in essence an arbitrage game, and arbitrage games rarely last.”
About This Quote
Source Interview: The Economics of Startups, 2015
Charging customers less than their value is a short‑term arbitrage that cannot sustain a business over time.
In simple terms: Undercutting hurts long‑term health.
Key Takeaway
Focus on sustainable pricing.
Themes
business
strategy
economics
Mood
analytical
critical
Type
business
economic
When to use this quote
- pricing strategy
- product launch
- market entry
Key Concepts
Arbitrage
price discrimination
value capture
Questions to Reflect On
- Is short‑term gain worth long‑term loss?
- How can value be captured without underpricing?
A Different Perspective
Undercutting may attract customers but erodes margins.
