Wednesday, July 14, 2010 7:39:57 AM
Quality Business 301:
Figure out what your business is. Find out what people doing business with you prefer in industry. Figure out how much it will cost to operate your business with the demands of the customer met and the demands of employees met. Inflate prices +70% to +300% higher than required to operate at desired level. Achieve quality status awards. Competition will drop prices and experience rapid growth. reduce markup by 50%, percieved bargain value + quantifiable quality + accumulated surplus profit = viability. Continue dropping prices over time, thus increasing the percieved bargain value of your premium product, until compeition cannot lower prices and continue to be viable yet also cannot raise prices without losing perceieved value, without dipping below +15% profitability. Business growth will be strong, slow and sustainable until market is dominated.
This company is playing into the formula... and they're not on the winning end.