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That's a pretty narrow interpretation of that statement.

It could also be simple.

If you charge someone so much that they can't sustain their business then you might win but at what price.

v.s If you charge someone what they can afford then they will stay in business longer and then you might end up winning in the long run.

And that's just one possible interpretation :)

That's the 'parasite' model. Don't kill the host :)

But you're right, there are more interpretations possible and not all of those are negative.

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