cbarr
Well-Known Member
- Joined
- Oct 7, 2009
- Messages
- 88
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Unfortunately the reality is much different from the theory. Unless one is able to up the numbers over time, prices will not decrease for various reasons which I won't get into. Furthermore it's highly unlikely that a substantial decrease in cost (10%) would have enough repercussions on price elasticity to further drive sales. According to a previous post, there was a 20/30% decrease I'm RRP but I think it's safe to say TB isn't driving RLPL volumes...
Well, if you're not focused on upping the numbers over time, why are you in the game? I can assure you, his backers, who are making the decisions, are looking for growth .
And again, not saying price will decrease. I'm saying cost to manufacture should, assuming you have reasonable brainpower at the helm.
I'm not speaking from a theoretical position. I run a similar-size company in an unrelated industry, which produces fine goods with every bit the QC requirements of clothing. And while it took years to get there, and it meant refusing weekly offers from interested investors, we've built a manufacturing model which yields a very healthy net profit, paying american workers a very healthy wage, to make things with their very expert hands.
The reality is, it can be done, but you have to commit to the hard fight.