In alt.home.repair on Fri, 29 Jul 2005 21:59:31 GMT "Doug Kanter"
My mother told me she would hear an advertisement or see a product at
$7.99. To make it simple, she would think $8. Then later she
wouldn't remember if it were 7.99 or 8.99, and would often remember
the price a dollar higher than it was. The opposite effect of what
There was a big outrage when they started messing with the size of
coffee packages. That was about 30? years ago?
It wasn't 7/19ths of an ounce. It was 5/32nds of a quart which is
about 8 times as much. It's almost 4% of the entire gallon. Other
than that, I agree with you.
Another difference about paint is that that is one product whose
package size hasn't varied for my whole life and probably much longer.
People are used to it with candy.
Also, when one runs out of candy no one says, Look, there's a corner
of your stomach that isn't covered in candy.
If emailing, please let me know whether
or not you are posting the same letter.
Change domain to erols.com, if necessary.
Ya know, whenever you're asked to explore any possibility except the one
you've chosen and carved in stone, you refuse. So, live in a narrow world,
and have a nice day. By the way, keep your lamps trimmed and burning. The
black helicopters are on the way.
What's the difference between greed, and wanting to do more business? Are
you in a business which has a policy of not finding ways to grow?
Go find the message I just wrote to Edwin. Open your mind to other
Greed: selling more cans of beans by selling smaller cans at the same price
per can, which is of course entirely equivalent to selling the same amount of
product at a higher price.
Expanding the business: selling more cans of beans by providing greater value
(actual or perceived) through a better product, better advertising, greater
variety of choices, etc. -- IOW, selling more product.
Note that the former case is *not* actually expanding the business; it's
merely increasing profitability.
If you actually have something in mind, just state it, instead of playing this
Doug Miller (alphageek at milmac dot com)
Addressing your comments about "merely increasing profitability" and
"guessing game" - here's yet another chance to entertain a new idea. The
price of transportation has gone through the roof. Whether a company runs
its own trucks, or uses common carriers, there is NO WAY they can control
the price of oil. I believe it was you who, earlier, said that if production
costs had risen, you'd find a way to control them or decrease them.
Transportation takes an enormous bite out of profits in the grocery
industry. Exactly how would YOU deal with this, if you did not want to raise
prices or shrink sizes?
I probably snipped because I wanted to focus on fuel. I don't remember.
Could've also applied to the price of milk, sugar or vanilla, though.
"things one doesn't want to do" Let's look at the answer our other
contestants chose. Mr. Miller says "evil and deception". Sorry...
Bells! Whistles! Balloons! Duane, our contestant from somewhere USA just won
the bonus round! Duane, let's watch as Vanna shows you what you've won! :-)
A lifetime supply of Molson Brodor, the real stuff, smuggled over the border
I am sticking to the point. You're talking about "increasing profitability".
I'm modifying that slightly - how about restoring lost profitability, which
you may need in order to remain in business. In other words, if you made 15%
profit for 10 years, and suddenly, something beyond your control causes that
to drop significantly, you either find a way to recover the money, or maybe
you go out of business.
One factor which affects the bottom line is transportation. How would you
address a factor over which you had little or no control? We're talking
about fuel costs.
Obviously, one either finds other ways to economize or eventually has to
raise prices to cover increased costs. It's not rocket science, just a
complex combination of marketing, competition and myriad other factors
involved in running a business...
One obvious solution for many in the US continues to be to go overseas
to reduce manufacturing costs, for example.
Of course I am. The point is profitability. Doesn't matter whether you're
increasing it, or simply maintaining it in the face of various factors. You
seem to be saying that increasing it is a bad thing. Why?
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