A Boring Dystopia

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Pictures, Videos, Articles showing just how boring it is to live in a dystopic society, or with signs of a dystopic society.

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givesomefucks@lemmy.world

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Wouldn't this mean that a majority of patients that need this are unable to buy it? Meaning that there's less customers? Just a thought (lemmy.world)

submitted 2 months ago by MECHAGIC@lemmy.world to c/aboringdystopia@lemmy.world

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[–] MECHAGIC@lemmy.world 7 points 2 months ago (1 children)

Thanks for the answer, sucks that it works that way

[–] Rivalarrival 3 points 2 months ago* (last edited 2 months ago)

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.