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Posts: 1,425 | Thanked: 983 times | Joined on May 2010 @ Hong Kong
#9
Originally Posted by IcyMoustache View Post
in the days of N95, even the arrogant Nokia was "selling goods at outrageous profit margins".... looks like it finally bit the dust (for the stupidity it's executives are worth)
I'm not saying selling goods at high profit is evil, I'm just talking about how people perceive it. Let me explain.

The profit margin increase when the economics of scale has been achieved. However, it doesn't mean a company should not sell goods at high profit margin. Talking about high profit margin N95 is nothing compare to Vertu, a spin-off of Nokia. It is considered fair to customers when the profit margin is proportional to real values in goods.

Some companies, however, fix their goods at a high prices regardless of economics of scale they have achieved. The gain in profit at the expense of social lost could be achieve by monopolization, inelasticity in price change, limiting supply, or legal authorities like patents, etc. At any rate, it's customers' right to fight against these kinds of obvious, but legal, exploitation.

However, opposite is true nowaday. People may love a product because the company manufacturing it is the profit-leader. So being a leader in sales volume is being ditched, while a leader in profit margin are being appraised of.

It is like saying "I love you more when you beat me harder." Call me a conservative, but it's just....wrong.

I might have been over-simplifying in my original statement, but to explain is lengthy and boring. I wish you don't mind.

Last edited by 9000; 2011-08-12 at 03:22.
 

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