There are companies making millions of dollars, and there are companies not doing well. The difference is profitable companies have their own recipe for making money.
The most widely used trick of making money is selling consumable products. For example, fine antique furniture lasts for generations. But if you are selling products like that, which people buy not only once in a lifetime but also once in several generations, you will not be making much money. To make money, you need to sell consumable products that people buy several times in their lifetime. Furthermore, to accelerate sales volume, you should put a lot of consumable products into a single package, e.g., a 12 AA battery pack instead of just a 2 AA battery pack.
Other than selling a product in bigger volumes, you can make more of a profit by increasing the price of a product. But if you just increase the price, customers will go to other stores that sell the product cheaper. Instead, if you manipulate the market price, you can increase the price without losing customers. Price fixing is a common practice among big corporations. It is illegal, but there are ways to control the market price legally. For instance, the energy board sets the price of gas or electricity, and OPEC sets the price of crude oil. These are all legal procedures, but these practices are not far from price fixing.
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Moreover, rhetoric lets you set higher product prices without losing customers. For example, in selling wine, you cannot sell much by just putting the wine on a shelf. But when a sommelier says "blah blah blah," people will happily pay a premium price for the same wine. Expensive brand-name products are also sold in the same way. Blah blah blah on fashion magazines persuades people to pay premium prices for ordinary products. Whatever your products are, if you sell them the same way other stores do, you will make mediocre profits. Discover your own secret recipe for making a profit so you can outperform your competitors.
© February, 2014