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Fellfrosch's Avatar
Posts: 1,092 | Thanked: 4,995 times | Joined on Dec 2009 @ beautiful cave
#9
Originally Posted by pichlo View Post
We all know the mantra. We have heard it a gazillion times and it is getting old.

The companies should realize this. In this equation,
profit = retail price - production cost
it is not the "production cost" part that is fixed. It is the "retail price" part. You need to start from that and then see how you can squeeze the production cost such that profit will be a positive number. If you work out you cannot do that, then don't even start. Do not attempt to cheat by increasing the retail price! It won't work.
It's old but true. That's the way things work. And the problem aren't the production costs, but the development costs.
 

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