Originally Posted by snowjeeper
The difference is that the private sector can easily charge more money to make up for their inefficiencies.
It's not just charging more, it's actively seeking to keep costs as low as possible in order to make as large a margin possible. That's why privitisation is so effective.
A businesses goal is to make their business as profitable as possible, if it is profitable it's succesful. A government running a sector is less concerned with making a profit and more concerned with just covering their costs in order to offer a service. If they're just covering their costs the price of whatever they're providing will be less but they also won't be as tight on keeping costs low.