From: "Stephen GoldenGun" 
Newsgroups: uk.finance
Subject: Re: Good Financial Products to Sell
Date: Sun, 13 Jul 2003 00:49:20 +0100


Martin McGranaghan  wrote in message
news:iJ0Qa.19055$4O4.2136713@newsfep2-win.server.ntli.net...
>
> "Stephen GoldenGun"  wrote in message
> news:beq483$58r$1@news7.svr.pol.co.uk...
> >
> > Ronald Raygun  wrote in message
> > news:kh_Pa.9831$gQ1.74428479@news-text.cableinet.net...
> > > Stephen GoldenKid wrote:
> > >
> > > > PVC Double Glazing!  If there was a decent profit
> > > > margin that would be good.
> > >
> > > Good for the manufacturer.  As a salesman you only get commission
> > > so you don't care what the profit margin is.  The profit margin on
> > > PVC DG is enormous, by the way.  It costs peanuts to make.
> > >
> > > > I prefer to sell that which is giving the highest return and best
> value
> > > > for money for the client..also.
> > >
> > > Those two objectives, I fear, are mutually exclusive.
> >
> > No they are not, if you make a decent profit, eg. the sales person....or
> > business.....both are selling, and if you sell at a decent market price,
> and
> > you get high quality products at a low cost then you make a large
profit,
> > and the client gets a good deal, in my particular business model, I
> believe
> > in selling high quality at low cost..to the end consumer.
> >
> > If you think it does'nt work, look at how the low cost jet airliners
work?
> > They deliver the product at a fraction of the price.....
> >
> > So don't tell me you can't provide a good service at a lower price, you
> just
> > need more customers thats all.
>
> He didn't, he told you highest return for the seller and best value for
> money for the client were mutually exlusive.  Can you comprehend?

I comprehend perfectly.


Take this general business model for example:

1/ Product A, which is sold at below market value due to low cost of
production or some other reason that is down to the skill of the
entrepreneur......So this is giving teh client better value than other
competitors.

2/ The high return on the business is because there is a large volume of
people who are purchasing this product due to the "high value for money"
factor.

This is a win win situation....it is a feature of many companies that
undercut the competitors..and give better value for money...

They usually expand quickly....an example would be amazon books for
example...they have a business model which offers the customers huge value
for money and huge savings..and high service also..but they also are doing
well due to the huge demand of their product.

Although I'm not sure if they've made a profit yet, they are worth billions
of dollars.

So I think they are not mutually exclusive from the business point of view.

Should I rephrase it then:

Business making high returns on its investment......and the customer having
high value for money.

Those are two solid business principles and are not mutually exclusive.

I hope that clears my point up now.
>
>


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