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XM financial trouble



 
 
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  #21  
Old March 22nd 06, 06:03 PM posted to rec.aviation.ifr
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Default XM financial trouble


"Jonathan Goodish" wrote in message
...
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.


Those articles are common, evidently written by "journalists" rather than
anyone who's ever run a company. Another similar version is the 50 cents of
chemicals it takes to produce major pharmacuticals. Yeah, like they just
materialize in the right combination...



  #22  
Old March 22nd 06, 06:09 PM posted to rec.aviation.ifr
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Posts: n/a
Default XM financial trouble


"Matt Barrow" wrote in message
...

"Jonathan Goodish" wrote in message
...



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.


Those articles are common, evidently written by "journalists" rather than
anyone who's ever run a company. Another similar version is the 50 cents
of chemicals it takes to produce major pharmacuticals. Yeah, like they
just materialize in the right combination...

I might add that selling to individual customers DIRECTLY is very different
than (generally) placing ads and having sales reps wait for calls so they
can sign up new customers.


 




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