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#11
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Sirius/XM
On Thursday, August 17, 2017 at 1:22:23 AM UTC-4, wrote:
On Thu, 17 Aug 2017 01:03:22 -0400, wrote: That's not always the case Greg. Advertising can simply be to increase market share ... or simply compete for business in the first place. The idea that all business costs are "passed on" to the customer is simply not true. Who pays them? If you are not covering your expenses with your revenue you are on the fast track to bankruptcy court. (or you are the government) === Generally production efficiency goes up with higher production volumes (economy of scale). So if you can grow your top line faster than the bottom, profits increase as does the possibility of decreasing prices. While I certainly understand your point, I believe there are few examples of the price of an in-demand product's price being reduced. If a company creates a product and it takes off in the market (higher production volumes), that means it's selling well at the current price point and there would be no reason to reduce price (profit). About the only thing that would drive that would be a competitor who takes market share away from you based on lower price or better quality/value. |
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