Increase Profit

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Martin Hash
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Increase Profit

Post by Martin Hash » Mon Aug 27, 2018 5:40 am

The 4 ways to make twice as much money from a product are:
1) Double the sales (but the market has to be growing)
2) Double the price (but competition prevents that)
3) Half the cost (but scarcity prevents that - unless you can "offshore.")
4) Double productivity (which halves the number of jobs unless people consume twice as much)
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Hastur
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Re: Increase Profit

Post by Hastur » Mon Aug 27, 2018 5:54 am

4) Double the Sales ;)
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Speaker to Animals
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Re: Increase Profit

Post by Speaker to Animals » Mon Aug 27, 2018 6:16 am

Hastur wrote:
Mon Aug 27, 2018 5:54 am
4) Double the Sales ;)
Which is covered by 1 and/or 2.

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Martin Hash
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Re: Increase Profit

Post by Martin Hash » Mon Aug 27, 2018 6:17 am

Hastur wrote:
Mon Aug 27, 2018 5:54 am
4) Double the Sales ;)
Added
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Speaker to Animals
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Re: Increase Profit

Post by Speaker to Animals » Mon Aug 27, 2018 6:26 am

Doubling the sales implies capturing that space beneath and above the curve corresponding to the elasticity of demand. It's almost always a matter of reducing price somehow. Where you can sort of argue salesmanship will actually affect the curve is in luxury items and possibly markets where all the products or services are strictly substitutable.

Even then.. look at the soft drink market. It's a competitive monopoly market where each soft drink is a monopoly for its particular taste, but they are all still somewhat substitutable. To double sales of Coke Zero, Coca Cola has to somehow lower prices against Pepsi Max. To double sales without directly lowering price relative to Pepsi Max, they have to do things like pay stores to better locate their product relative to competition. But that really amounts to increasing the unit cost.

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SuburbanFarmer
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Re: Increase Profit

Post by SuburbanFarmer » Sat Sep 01, 2018 6:17 am

- Temporarily lower prices to eliminate your competition

- Lobby for subsidies

- Substitute ingredients for chemicals

- Issue corporate junk bonds, and buyback stock

- issue non-voting shares of stock

- Start a crypto currency

- Buy out competitors, then re-sell pieces of them
SJWs are a natural consequence of corporatism.

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