We've done price elasticity studies, and the answer is always that we should raise prices. We don't do that, because we believe -- and we have to take this as an article of faith -- that by keeping our prices very, very low, we earn trust with customers over time, and that that actually does maximize free cash flow over the long term.
Jeff BezosI think one of the things people don't understand is we can build more shareholder value by lowering product prices than we can by trying to raise margins. It's a more patient approach, but we think it leads to a stronger, healthier company. It also serves customers much, much better.
Jeff BezosIf everything you do needs to work on a three-year time horizon, then youโre competing against a lot of people, But if youโre willing to invest on a seven-year time horizon, youโre now competing against a fraction of those people, because very few companies are willing to do that. Just by lengthening the time horizon, you can engage in endeavours that you could never otherwise pursue. At Amazon we like things to work in five to seven years. Weโre willing to plant seeds, let them growโand weโre very stubborn. We say weโre stubborn on vision and flexible on details.
Jeff Bezos