Certainly, this insight is relevant when the demand-side gap is such that SOD>SOS. On the other hand, it is more difficult to see how oversupplying customer service could be a big problem. After all, is more service not always better? How could this lead to sales declines? The answer lies in the fact that providing these high levels of service is costly. Indeed, the standard wholesale and retail prices for a CD were about $12 and $19, respectively, for a CD that might have 12 or so songs on it. This pricing was driven partly by historical norms; once a particular level of margins is established in the industry, it is hard to challenge them to achieve lower retail prices for consumers. But it is also necessary to charge a retail price high enough to generate retail profits that cover the costs of running bricks-and-mortar stores. If customers do not highly value the in-store services created through bearing these costs and have an alternative channel through which they can buy more cheaply (but still get adequate levels of their key service outputs), then oversupplying customer service becomes a serious drawback.