Good profits come from creating value for customers. Bad profits come at the expense of happy customers and long-term sustainable growth. Bad profits come from customers who are locked in, who feel trapped or abused. Bad profits come from nuisance fees, like airlines charging extra for checked baggage, car rental companies charging $10 per day for a GPS unit that cost them $100, or banks charging $15 to $25 for a bounced check that costs the bank less than $3. Bad profits maximize transaction value, but they destroy relationships in the process. And bad profits are addictive.
