My father in law loved the saying, "you can go broke saving money." This is true in so many ways. Starting with small and immediate: buying something just because it is "such a good deal" may still be more than you can afford. But on a larger scale, companies that engage in an arms race of sorts to reduce costs, can face unintended consequences down the line.
Constant discounting shrinks profit margins to razor-thin levels, leaving companies with limited "rainy day" funds, and/or growing debt, making them vulnerable to economic downturns. It can stifle innovation. Research and development are expensive. And it generally means reduced quality and/or service.
A focus on cost cutting exclusively can sacrifice long-term innovation for short-term survival. Only the largest "big box" players with massive economies of scale can survive sustained low margins. That eventually kills smaller, "high touch" businesses and reduces market diversity. None of that is good for the consumer.
Of course this plays out in real estate... there have been discount brokers for years. And there is always an agent willing to discount his or her commission. But markets are exceedingly efficient. A focus on lowest cost overlooks greatest VALUE. The value of timely, well-considered advice that protects the client's interest. The value of best-in-class marketing collateral and widespread exposure to the marketplace that results in the strongest offer. The value of a team ready to guide a client through all aspects of a huge transaction, getting the deal to closing and not sidelined by complexities along the way.
Next time you are tempted by a too-good-to-be-true price, think about the behavior that low price may encourage, and what you are giving up to get it. Markets don't lie.
