Wise Words

[Francis]

I sell widgets. I've been selling these really popular widgets, #1 in the nation, for years. I've got cash shoved under my Bentley's back tire to keep it from rolling down the hill of money it's parked on. Got the picture?

Okay, you decide to get into the widget market. You have a comparable widget you market to the public. This is in direct competition to me. I can play fair and hope everybody likes my widget more than yours, or I can cut my prices so low that customers would be silly to buy your widgets, since they're basically the same but far more expensive. You are forced to cut your costs, but since you don't deal in the volume that I do, your costs are higher, your margin much thinner. If I cut my prices even down to the point that I lose a bit on each sale, it is worth the loss because you can't possibly compete for long. You will be forced to go out of business, then I can raise my prices back up to previous levels, even a little higher to make up the losses. I can set any price I want because I now have no competition.

Right misconception.. Or double talk or the inverse to "buy a car without credit"

It is not sustained resale at loss, hence not a real resale below cost..

It's called back ending the margin.. At some point you are making back the profit on those parts otherwise you are out of business, hence you never sold them for a loss..

Scenario 1
Different way to regain profit.. You sell the Widget for below cost to customer X and charge him credit terms in excess of standard usual. Hence -10% on parts but charging him +30% from the day the parts shipped to him on resale.. Nice cosy profit..

Scenario 2
You sell the Widget for -5% below cost to customer X and know the manufacturer will be giving you a charge back refund of 25% due to a VAP ( Volume Agreement Pricing ) that you negotiated. Adding to this a Shipping and handling fee of 10% more and you get a even better profit.

 

[darkangel]

I should be selling Widgets! :willy_nilly:

 

[Francis]

I should be selling Widgets! :willy_nilly:

Why not, everything is a widget..

Most profitable Widgets..
1) Sex Toys
2) Senior amenities.. ( this is the fastest growing market )..

 

[Accountable]

Right misconception.. Or double talk or the inverse to "buy a car without credit"

It is not sustained resale at loss, hence not a real resale below cost..

It's called back ending the margin.. At some point you are making back the profit on those parts otherwise you are out of business, hence you never sold them for a loss..

Scenario 1
Different way to regain profit.. You sell the Widget for below cost to customer X and charge him credit terms in excess of standard usual. Hence -10% on parts but charging him +30% from the day the parts shipped to him on resale.. Nice cosy profit..

Scenario 2
You sell the Widget for -5% below cost to customer X and know the manufacturer will be giving you a charge back refund of 25% due to a VAP ( Volume Agreement Pricing ) that you negotiated. Adding to this a Shipping and handling fee of 10% more and you get a even better profit.

The only regulation should be an umpire-like approach of making sure one capitalist doesn't use his money/position to unfair advantage against an opponent. Don't lose the point by arguing the example.

 

[Francis]

You don't pay taxes - they take taxes.
Chris Rock

 

[Francis]

To rule is easy, to govern difficult.
Johann Wolfgang von Goethe

 

[Accountable]

No greater injury can be done to any youth than to let him feel that because he belongs to this or that race he will be advanced in life regardless of his own merits or efforts.
Booker T. Washington

 

[edgray]

Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.
Winston Churchill

so why has life improved thanks to the miserable socialists and their policies? Life in pre-socialist Britain was a very harsh reality indeed.

No wonder Mr Churchill made an absolutely useless PM, except for his gung-ho warmongering.

(it's worth noting he was voted out as soon as the war ended, with good reason, he was an alcoholic misogynistic moron and a terrible leader for Britain.)

 

[pjbleek]

so why has life improved thanks to the miserable socialists and their policies? Life in pre-socialist Britain was a very harsh reality indeed.

No wonder Mr Churchill made an absolutely useless PM, except for his gung-ho warmongering.

Edzo, you can not blame Churchill. what would you do if your home country was being bombed to shit and a hand-basket and had to go on bended knee if front of the USA to ask for protection against the damn Nazis?

 

[edgray]

Edzo, you can not blame Churchill. what would you do if your home country was being bombed to shit and a hand-basket and had to go on bended knee if front of the USA to ask for protection against the damn Nazis?

We're thankful for Churchill for his war time efforts, that was his strength, but as a PM, he sucked. Big time. Oh, it's important to point out that when we asked the US for help protecting Britain from the Nazis, they declined. The Battle of Britain was won by only the British. The US joined the war against Germany because Germany declared war on them the following year.

 

[pjbleek]

I thought the USA provided battleships while we were declaring neutrality?

 

[edgray]

I thought the USA provided battleships while we were declaring neutrality?

for defending US related trade voyages that the Nazis were attacking, yes that's true.

 

[skyblue]

Please explain that concept to me.. Why would a capitalist sell below cost ?? That is the biggest misconception in America.. Hence the biggest piece of BS ever sold to you..

a medicine company might make huge profits,profits beyond our imagination selling sun creams and hairspray.......but they might come across the cure for the bastard thats called cancer,they sell at a loss so not only the rich can benefit

 

[Charisma]

False friends are like our shadow, keeping close to us while we walk in the sunshine but leaving us when we cross into the shade......

 

[edgray]

False friends are like our shadow, keeping close to us while we walk in the sunshine but leaving us when we cross into the shade......

summarises the "special relationship" between the UK and US perfectly :24:

 

[darkangel]

summarises the "special relationship" between the UK and US perfectly :24:

How is that so?

 

[Minor Axis]

I'm asking if you believe in the wise words you quoted... especially in that light.

I believe that giving up civil liberties in the name of security is a slippery slope. Such as tapping everyone's conversations in hoping of finding a terrorist, hassling someone for ID who looks Hispanic because you "think" they could be an illegal, pulling up the local library's patron reading list in the hopes of finding a terrorist, etc.

I view a government guaranteed health program and pension program in a different light. However, in reality, every law that is passed results is some loss of personal liberty. The trick is deciding which ones are worth it. If the Health Program and Social Security can be kept viable, I'm all for them. There is no reason to support it if they are not viable.

The only regulation should be an umpire-like approach of making sure one capitalist doesn't use his money/position to unfair advantage against an opponent, such as selling below cost.

You are advocating hard core government interference in the marketplace, the kind I though Libertarian's are against?

For Francis, selling below cost is a common occurrence. Maybe you remember when China was "dumping" products into the U.S.? They were selling below cost to takeover the market on a particular item. Airlines when competing will undercut their costs for marketshare. There is absolutely no way you fly coast to coast for $100 and have the airline break even. There is more to the story I won't go into. But the way airline competition has gone the last 15 years, some customers think it is absolutely reasonable to pay such a price.

 

[Peter Parka]

How is that so?

USA is keen to emphasis their special relationship with the UK when they need something but soon change their tune when the UK need something off of them.

 

[Accountable]

We're thankful for Churchill for his war time efforts, that was his strength, but as a PM, he sucked. Big time. Oh, it's important to point out that when we asked the US for help protecting Britain from the Nazis, they declined. The Battle of Britain was won by only the British. The US joined the war against Germany because Germany declared war on them the following year.

You can always count on Americans to do the right thing - after they've tried everything else.
Winston Churchill

Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master.
George Washington

Few things can help an individual more than to place responsibility on him, and to let him know that you trust him.
Booker T. Washington

At the bottom of education, at the bottom of politics, even at the bottom of religion, there must be for our race economic independence.
Booker T. Washington

 

[Charisma]

summarises the "special relationship" between the UK and US perfectly :24:

Thought my post didnt belong here after reading the above so thankyou for answering me at least lol.:thumbup

How is that so?

That sort of subject could start so many "rows" so I try to keep away from it but know what you mean