| PM | Quote | Reply | Full Topic |
Seasoned...
Joined: Sat Oct 21st, 2017
Location: Near The Pointy End , USA
Posts: 1299
Status:
Offline
Reputation: 
Reputation Points: $user_rep
What if YOU owned the LED lighting company? How or would your stance change? Where would you draw the line between what you felt was "enough" profit in comparison to overhead and losses? Would you market yourself to be grossly undercutting the market knowing full well you're leaving money on the table that people are willing to pay for a product they believe is a quality product considered to be a fair price?
-- i.e. 'IF' there was a $1k product you sold, where your dealers and affiliate vendors were still able to put 30% margins in their pockets from MSRP/MAP [or not], and you were able to 50%+ in your own pockets. Would you cut off 30% or more in order to drive the market down and steal sales and market shares?
WHAT if your dealers didnt even get that. Maybe their cost factors are derived from only a 10% off MSRP/MAP and your profit was more than 50%? Would you hack into that to stunt business growth? Advertising costs? How about sponsorships? Donations for events or forum participation? Investment into R&D for new product lines? Warranty coverage being Limited or Lifetime? Expanding operation costs? New technology in materials or tooling? Raises for worker performance? Insurance costs for employees? Better and more workers to enhance customer service needs?
(( ALL under the assumption these are committed acts of a good business model and not the typical understanding we have of how a City/County/State operates in base line budgeting tactics ))
Does your position change? How would you diverse reinvesting into yourself and the business, via mass market share volumes or higher margins and less sales volume? Whats the driving force behind what you [generalization] consider success?
Last edited on Fri Mar 23rd, 2018 05:30 pm by Undrstm8ed
____________________
"Be never first, never last and never noticed." - Unknown
"The slave is held most securely when he is held by the chains of his own will and of his own fears, and when he is locked down by his own slavish desires for a comfortable life." - Michael Bunker
"Mundus vult decipi, ergo decipiatur" - ~ attributed to Petronius (Gaius Petronius Arbiter (ca. 27–66 AD))
Roman courtier during the reign of Nero.
"Those who expect to reap the blessings of freedom, must, like men, undergo the fatigue of supporting it." - Thomas Paine
~ Undrstm8ed Truckumentry Write Up Pg.
~ Undrstm8ed Trailermentry Write Up Pg.
.