You are a consultant for a very profitable shoe company which has had a lot of success making low-cost shoes for customers who are very price sensitive because they can easily find inexpensive shoes through the company's competitors. The shoe company has a very efficient manufacturing process because they only make seven models of shoes. The CEO does not want to expand to a new customer base but wants to triple the selection of shoes offered to her existing customers. She wants your advice on this idea. Which of the following arguments should you make to her? (select all that apply)
A. A better idea would be changing the designs of the existing line of shoes to make each more fashionable so they can demand higher prices
B. Since the bargaining power of customers is high, any increase in prices due to expanding the selection of shoes would risk losing customers
C. The CEO's idea may not triple the profitability of the company, but it will certainly lead to higher profit margins
D. The company's ability to manufacture shoes cheaply is likely dependent on a limited product line, so tripling the selection would increase costs