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5. Go to a business executive and CEO of some consumer good, and tell them to drop the prices below profitability until all inventory is cleared. See how you are treated.
Do you truly believe this is how business works?
What do you think factories do with items they can't sell at regular price after a certain period of time? They offer them to their distributors/retailers at 50-90% off. They don't keep the items forever.
Or, do you really believe they force us to purchase items we don't want? At prices that we can't resell them?
It is ALL about what the consumer wants and the price they are willing to pay. The manufacturers have winners and losers. The retailers try to predict what their customers will buy. When we are wrong, we ALL lower the price, not just below profitability, but many times below our cost, just to move the items out and get some revenue.
What do you think factories do with items they can't sell at regular price after a certain period of time? They offer them to their distributors/retailers at 50-90% off. They don't keep the items forever.
Or, do you really believe they force us to purchase items we don't want? At prices that we can't resell them?
It is ALL about what the consumer wants and the price they are willing to pay. The manufacturers have winners and losers. The retailers try to predict what their customers will buy. When we are wrong, we ALL lower the price, not just below profitability, but many times below our cost, just to move the items out and get some revenue.
This is just all falsehoods.
They don't change prices as demand moves, because they want to keep inventory in a certain brand of products relative to their production costs as to not attract consumers to the cheaper version rather than the popular version.
And if something is not selling well, they would sooner pull it off the shelves than lower the price to the point where they are sold at a loss and attract consumers away from the better selling items that actually turn a profit.
And ignoring marketing, internal supply chains, and market control for consumers is ignorant.
Ah, more sound business analysis from Winter(Widgets are real and I know all about how to produce and market them!)fall8324.
What was it you said earlier?
Quote:
Hehehe!
No Tax, you are the one who's floundering, you're making desperate lies and diversions to distract from your crumbling philosophy no professional listens to.
You can read what I wrote, and a certain widget, whatever it is, that's produced by a company will be handled often times in the same production center by multiple companies, or the same general area.
You know what I said, and you choose to denigrate yourself, failing to ever prove what I say as wrong. Look at my reply to KaraG, it absolutely abolishes your fantasies.
Now the bold here is remarkable, and incredibly misleading. A small company can't offer a competing good at a lower price unless the bring production costs down. Being as they don't have the resources or capital to do that, they cannot compete with these large businesses without going bankrupt.
None of that has to do with a free economy, that is based on authoritarian structures and a highly planned economy (big business).
.
You and Pittsflyer are blaming big business for everything. Corporate America does not have their foot on our backs as you think. Is it possible you are both struggling to start businesses and are using big business as a scapegoat for failures?
First off, for a good product/service idea with good leadership and a good business plan, there is plenty of capital to be had from a variety of sources. People want to make money and will invest in good ideas and people. For me, it was relatively easy to secure a high line of credit from a local bank based on my contracts/receivables, and eventually secure a commercial building loan. All I started with was the small savings from my consulting work (I did not come from wealth), but I had good business ideas and a good network of mentors that I cultivated. And I was willing to work very hard and take on a lot of risk. There are many small businesses that were started this way. Thankfully, it is the American way. We could not have done this in Russia. The U.S. has a plethora of successful small businesses that offer innovative and life-saving products that improve lives, and contribute greatly to personal choice, freedoms, and happiness.
Small companies benefit from large businesses as the big companies are major purchasers of their goods/services, and can also create new niche markets for them. Big companies can also serve as training grounds for future small business CEOs/employees.
Small companies can compete quite effectively against large businesses as they have several advantages, including being leaner with lower overhead costs (e.g. HR dept costs), with less bureaucratic/process costs, and they are able to be more flexible/quicker in meeting new market demands.
There are plenty of markets where conscientious buying is preferable to the lowest price. There are customers who prefer to “buy local” and prefer their local smaller business over large corporations due to socioeconomic beliefs. There are also city/state statutes that promote local business purchasing/investment.
There are plenty of markets where being fast and cutting-edge is preferable to the lowest price. Small businesses are flexible, adaptable, and speedier than large corporations. They are quicker to embrace trends. Compare how a small startup can develop/roll out the lasted technologies vs some of the slow moving, corporate-process hamstrung large companies.
There are plenty of markets where customer relationships/servicing are preferable to the lowest price. Smaller businesses are more likely to offer more personal customer services that provide added value. Even with the bid process, there are ways to demonstrate added value so you do not need to compete on price point alone. By relationship-building, purchasers will steer contracts in your direction. E.g. They will get bids from big corporations that can’t match pricing. Or they will put only your particular brand of product in the specification.
There is an art to all this based on personal sales relationships/trust building, which I doubt you will ever understand since you think profit only flows from labor costs. And you think that purchasing decisions are only made on price point. And you think the sale stops at the widget.
You don’t even understand how great profits can be generated from after sales events, such as upgrades, servicing, and changes orders. And that purchasers know these costs will be coming in a future purchase order, but they don’t care because they like you and the service you are providing to them as a small business.
You are a small picture thinker who can not get past the production/labor costs of a single cheap widget.
They don't change prices as demand moves, because they want to keep inventory in a certain brand of products relative to their production costs as to not attract consumers to the cheaper version rather than the popular version.
And if something is not selling well, they would sooner pull it off the shelves than lower the price to the point where they are sold at a loss and attract consumers away from the better selling items that actually turn a profit.
You just look foolish making these types of statements. Not only do you not understand basic concepts of business, but looks like you've never even shopped at a real store and seen clearance or closeout racks.
You just look foolish making these types of statements. Not only do you not understand basic concepts of business, but looks like you've never even shopped at a real store and seen clearance or closeout racks.
Really?
Do you think clearance sales happen all the time?
Actually, they are usually planned before hand, as they are already estimated in the company's accounting, overhead, and production costs:
No Tax, you are the one who's floundering, you're making desperate lies and diversions to distract from your crumbling philosophy no professional listens to.
You can read what I wrote, and a certain widget, whatever it is, that's produced by a company will be handled often times in the same production center by multiple companies, or the same general area.
You know what I said, and you choose to denigrate yourself, failing to ever prove what I say as wrong. Look at my reply to KaraG, it absolutely abolishes your fantasies.
You are left with nothing.
Thats becuase taxPhD is a troll, as soon as he is in a corner he tries to wiggle out of it as if there is some procedural out in an online discussion.
You and Pittsflyer are blaming big business for everything. Corporate America does not have their foot on our backs as you think. Is it possible you are both struggling to start businesses and are using big business as a scapegoat for failures?
First off, for a good product/service idea with good leadership and a good business plan, there is plenty of capital to be had from a variety of sources. People want to make money and will invest in good ideas and people. For me, it was relatively easy to secure a high line of credit from a local bank based on my contracts/receivables, and eventually secure a commercial building loan. All I started with was the small savings from my consulting work (I did not come from wealth), but I had good business ideas and a good network of mentors that I cultivated. And I was willing to work very hard and take on a lot of risk. There are many small businesses that were started this way. Thankfully, it is the American way. We could not have done this in Russia. The U.S. has a plethora of successful small businesses that offer innovative and life-saving products that improve lives, and contribute greatly to personal choice, freedoms, and happiness.
Small companies benefit from large businesses as the big companies are major purchasers of their goods/services, and can also create new niche markets for them. Big companies can also serve as training grounds for future small business CEOs/employees.
Small companies can compete quite effectively against large businesses as they have several advantages, including being leaner with lower overhead costs (e.g. HR dept costs), with less bureaucratic/process costs, and they are able to be more flexible/quicker in meeting new market demands.
There are plenty of markets where conscientious buying is preferable to the lowest price. There are customers who prefer to “buy local” and prefer their local smaller business over large corporations due to socioeconomic beliefs. There are also city/state statutes that promote local business purchasing/investment.
There are plenty of markets where being fast and cutting-edge is preferable to the lowest price. Small businesses are flexible, adaptable, and speedier than large corporations. They are quicker to embrace trends. Compare how a small startup can develop/roll out the lasted technologies vs some of the slow moving, corporate-process hamstrung large companies.
There are plenty of markets where customer relationships/servicing are preferable to the lowest price. Smaller businesses are more likely to offer more personal customer services that provide added value. Even with the bid process, there are ways to demonstrate added value so you do not need to compete on price point alone. By relationship-building, purchasers will steer contracts in your direction. E.g. They will get bids from big corporations that can’t match pricing. Or they will put only your particular brand of product in the specification.
There is an art to all this based on personal sales relationships/trust building, which I doubt you will ever understand since you think profit only flows from labor costs. And you think that purchasing decisions are only made on price point. And you think the sale stops at the widget.
You don’t even understand how great profits can be generated from after sales events, such as upgrades, servicing, and changes orders. And that purchasers know these costs will be coming in a future purchase order, but they don’t care because they like you and the service you are providing to them as a small business.
You are a small picture thinker who can not get past the production/labor costs of a single cheap widget.
I am working on developing a prototype of a highly complex system so my only impedance is cash flow. The existance of corporations does not help anyone because they out compete small business and put them under, where without the corporation existing many small business would be able to flourish. People like myself could get day jobs to continue on our work.
I am still making progress because I am now in the education system and because I am partly in the academic phase of development and devloping out the tool sets its not too bad (building out a CNC machine, buying breaks, welders, etc) and reading up on the details of what I want to design, most of the solidworks assembly is complete. I still have to help pay for real life as well with my wife and so a greater microscope has been put on, what is still considered to be, my "hobby" due to our decreased family income due to my lay off.
This also hurts other business in a trickle down effect as I have to do things like cut my own hair, make alot of my own stuff because we dont have the extra income to go do that and still develop my "hobby".
Allowing small groups of people who have economies of scale and great products to choke out the market is a bad idea. those companies can be busted up and the same great products made but with more people employed and slightly higher prices but how much does a slightly lower price help you if your income is 0 because you were one of the ones laid off? Or if you have to take a 75% pay cut to save 10 cents on a item.
Yes its possible to out compete a bigger player but its fighting an uphill battle and you have to have a very special skill set of sales. but its a very uneven playing field and anti trust was developed for this exact reason. When played out in real life this method of closing the deal, I would say, is undignified, you are basically having to pander and beg and put on a massively fake front for a VERY long period of time to VERY slowly get contracts, and G$d help you if you make even one mistake in that process otherwise the work goes straight to the big boys.
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