In article ,
"Matt Barrow" wrote:
In sum, in some industries, yes; not so in others. In industries with costly
FIXED infrastructure, for example.

The bottom line is that new customer acquisition does not cost "next to
nothing" for any business. Neither does customer retention.

A few years ago, I read an article that analyzed the costs involved in
producing an Apple iMac. While the iMac sold for around $1000 at the
time, the analysis concluded that Apple was making a windfall profit
because parts costs were only around $250. The analysis completely
ignored the costs of doing business: marketing, R&D, manufacturing,
distribution, etc. In reality, Apple's profit was much smaller on a
per-unit basis than the article suggested.



JKG