bernoulli
Distinguished Member
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- Jan 8, 2012
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His fixed costs are much lower than Carmina's. No marketing and other types of overhead, such as rent for physical stores and the labor associated with that.
Of course, his volume is also much smaller, but his break-even point is orders of magnitude smaller than that of a larger brand.
Now, I am not impliying he should keep his prices down; it is all about price-elasticity of demand and his long-term strategy. It is just that a comparison with Carmina is not the way to go.
Of course, his volume is also much smaller, but his break-even point is orders of magnitude smaller than that of a larger brand.
Now, I am not impliying he should keep his prices down; it is all about price-elasticity of demand and his long-term strategy. It is just that a comparison with Carmina is not the way to go.
Wow, those are Carmina prices. I don't know how he can make a profit at that price point with the handwork and Western European labor costs.