Quote:
Originally Posted by celandina
I guess I was drunk...instead of less then a penny its 3 pennies....I appreciate your explanation but still it makes very little economic sense...and that was my point 
If the production costs ( at a minimum) are $ 5,000 per hour then this math does not work. I work on a principle " a dollar in, a dollar thirty out"... this would be in miilons of views before I would aproach a recoupment, never mind a 30% profit....Not a formula for me. Not trying to argue,but stating what rules I operate under. |
sure it is a question of the concept.
on long term you might make more money when you try to sell as expensive as possible
and one day in some future you will get more out of it. but as you have to do it with far less people it will take much longer.
the concept of a big business is mass. getting smaller but faster profits and invest again faster. those big biz constructions also do not expect 30 or 40% ROI they are even fine with 8-10% but as the basic sum is bigger AND growing faster those 8-10% are MUCH more at the end.
but you are right that this is not a concept for a one-man show or a very very small company. but the problem for them starts when the same products are also available for the big company. here is the power of money one of the factors a small company canīt compete.
so you can turn it around as you want - it is always a competition of the best no matter in what concept you believe.
the big error in our biz is that many smaller ones think that there is a way for them ALL to survive. but this will never happen. either they got ate by the big ones or by the smarter small ones.