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Joined 1 year ago
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Cake day: June 11th, 2023

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  • It doesn’t work that way at all.

    Pricing strategy generally calls for optimizing return. They calculated that this company has 342 customers. Each customer adds $28 in costs. The unknown is how many additional customers will choose to buy at a particular price point.

    If we halve the price paid by the customer (and add $28 to account for our increased costs) will we at least double our customer base to 684?

    If we halve that price again (and add another $28), will we at least double our customer base again, to 1368?

    At some point, lowering the price any further will not gain enough customers, and that is the minimum price we can charge while maintaining our current profits. The article went well beyond that point, contemplating a price point that would provide only 30% of their current profits.

    If they lowered their price point to, say, $2700/yr, they would only need to add about 5100 new customers to break even with their $42,222 price. I think they would attract a hell of a lot more than 5100 new customers at that price point, meaning they would be radically increasing their revenue and profits. They are currently earning far less than they could be by demanding so much.













  • That’s what JSO is doing. thinks they are doing, despite all evidence to the contrary.

    FTFY.

    I’ll note that nobody in this thread has yet made a single comment promoting a specific political action against oil. Your last comment comes the closest, but even that doesn’t even qualify as a “concept of a plan”.

    JSO isn’t inspiring people to talk about oil. They are inspiring people to talk about the limits of free speech, and the preservation of the right to travel. They’ve inspired legislators to act, just not in any way that would actually affect the oil industry. JSO has certainly accomplished something with their antics, just not anything that they’ve set out to do.

    Again, direct action against the oil industry. Exploit it’s soft targets, raise the cost of oil, make alternatives relatively cheaper, and watch the problem disappear.