“Jeff Bezos’ publicly-stated idea that, “if you treat the customer right, the stock price will follow” is not borne out by any history of which I am aware.
In Jeff’s case, if you continue to give profits back to customers through free shipping and discounts, you will never make much profit, and your stock price will indeed follow (but in the wrong direction), as it has this year…
Longtime SNSers will remember the original SNS T-shirt: “Making a profit is nature’s way of saying you’re a necessary part of the ecosystem.”
If your business model does not allow you to make a profit — or much of one — then maybe the ecosystem is talking to you. Or you need new management which can serve [customers and shareholders].”
- Mark R. Anderson, Strategic News Service, May 5th, 2005