Quote:
Originally Posted by obvious Child  Not necessarily. Lower cost doesn't equate to more customers. Furthermore, some business models want very few customers. They derive their 'value' from being exclusive. |
See, now your just
trying to be cute.
In most cases, unless the business specifically sets it up so that lower costs with higher quality are not meant to equate to higher sales and higher profit... then lower costs with higher quality
will equate to higher sales and higher profit.
If you were being intellectually honest, you would have conceded to my point displaying your error and/or simply acknowledged my point and expanded your original thought to include what you meant to say instead of what you wanted what you did say to mean, when in fact it did not.
Look, you were talking about highly competitive businesses that strive for the highest quality and lowest cost products for the singular effort of attracting the most customers so that they can arrive at the highest profit. Wallmart... Costco...
Now you are trying to twist it to fit some other example so that you are still correct. Go ahead. Try.
Quote:
|
The last part isn't necessarily true. Higher profits don't necessarily come from being more competitive. You may be making less then you did before competition. Airlines for example. They have been making far less since deregulation.
|
Competition
Main Entry: com·pe·ti·tion
Pronunciation: \ˌkäm-pə-ˈti-shən\
Function: noun
Etymology: Late Latin competition-, competitio, from Latin competere
Date: 1579
1: the act or process of competing : rivalry: as a:
the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms b: active demand by two or more organisms or kinds of organisms for some environmental resource in short supply
2: a contest between rivals; also : one's competitors <faced tough competition>
competition - Definition from the Merriam-Webster Online Dictionary
It is simply the most common form of economic competition that there is and it is known as budget competition. You are seperating two concepts that are tied together in an effort to do... what?
There is no company nor any product in that world that is not competing against another company or product for people's dollars.
There is no company nor any product in that world that is not out to make a profit either... those that are are known as nonprofit organization and they are exclusively out to help with charities or the environment etc., hence the not for profit label.
Quote:
|
And you don't seem to quite understand that high profits aren't the conclusion.
|
So you acknowledge that, "
you are not integrating it into the bigger picture" then?
Price elasticity involves a market or good that can either be described as elastic, or inelastic, by describing it's responsiveness to the proportionate change in another quantity and our illegal employees supply the demand vacuum quite nicely in the larger and smaller pictures.
I have used commonly accepted definitions, I studied economics at University, and I deal with these concepts daily as we own our own business. You have barely avoided stepping on your own toes thus far and unless you are able to display this illuminating insight of yours in a clear and concise manner, and in a way that refutes
Rogues statements and that does not tie profit with competition in your grand scheme that is everything about profit and competition on a larger scale, well, I am afraid that we might reach an impass.