Your understanding of economics is utterly horrible.
You're not "making $97" every day. When you start a business your first sales are not profitable. You also have to sell these products before you can even use this number.
Tell me this, how did you "buy" this new facility you are now working in? Did you just save profit until you had enough to make the purchase of the new building and then buy it outright? No, because you had expenses initially and you had to break even before it was even considered profit! In fact, you probably took out a huge loan to start this business in the first place.
Add in things like health plans for the employees, furniture for the new building, pay raises, inflation, and ultimately.......extra RESEARCH AND DESIGN!
You will find the increased services the company is providing is going to cost you, the consumer, more money. I don't think Fi plans to keep the same lines of subs for the next several years, I imagine they will need to engineer new ones.
That is going to be an addtional cost not factored in the general manufacturing process that you so exquisitely presented to me.
I guess JL Audio would be where they are today if they never increased their costs right? Making stealthboxes in house, driver testing each driver, setting industry benchmarks people are using as a base of comparison 4 years after the release....they got where they are keeping costs the exact same right?
Go back to your macroeconomics 101 class and study a little harder next time.
Ok, let me make you look like an idiot again....
First off, if your sales are not profitable then you are not going to be a very good business man and have a very terrible business plan. You are certainly right about not making a profit on the first subs you sell, but we are talking about AVERAGES. You are averaging $93 per sub.
Oh and if you can’t sell your products then you are not building the correct products. //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif
Fi, has plenty of products to sell and I’m pretty sure sells everything that they make, like most companies do, if you have an overstock it is usually the distributors problem. IE, company ‘A’ builds a transistor it sells to a stock house ‘B’ for $1. If the stock house ‘B’ doesn’t sell it at its normal $5 MSRP then they sell it for maybe $3. BUT, the manufacture still gets $1.
Also, my example company has factored in expenses such as loans and things they are just not labeled that way, and you are choosing to be ignorant about not seeing them to fit your one sided thinking. Also, if you take out a loan and are losing money you are not charging enough in the first place OR your bank is taking you for a ride. So if your loan causes you to raise prices it is not an effect of growth, but of general bad planning.
Anyway, I acquired this new facility both through money saved and money loaned, this company didn’t open on Jan 1st and buy a new building on Jan 3rd so I has had a chance for it to grow and save some money. The expense of the money owed from the debt is factored into the over all expense of the building as in the machines just like in the first building and first two machines.
Also, Health plans for employees are factored into what they get paid. If you want me to outline an entire business plan for you I can, but not going to burn my time schooling an ignorant bloke who thinks he knows more than me.
Also, hasn't Fi come out with new subs? Scott can probably back me up on this, but haven’t they made a new sub design very recently????? Does the BL ring a bell??? Anyone?? Did the price of the Q go up because they started to make the BL? What about the price on the SSD? Did it go up and I am seriously missed something?
So you have that AVERAGE profit of $93, lets say we put $10 of that per month into research and advertising and a 401k plan for our 4 dear employees who we love and treasure so much. That leaves us with $83 AVERAGE per day over a period of time. Well, through our research we have discovered a way to make a single 8” do 189db. Isn’t that going to raise our sales? Which means more profit? Which means that $10 per day charge isn’t going to be so bad?
Call me stupid or whatever you want but this is how it works in the real world my friend. If you don’t believe me feel free to come down to my town and I will show you the multi-million dollar company that my family has build from the ground up. Oh and you might think oh it is a family company and he probably hasn’t done anything with it. But, I managed one department which I took from a small 50 radio rental fleet into a 600 radio rental fleet with 7 conventional repeaters and 3 LTR Trunking repeaters. And, yes my costs went up, but my profit went up too, and guess what. Have you guessed it yet? I haven’t raised the prices any more than inflation rates. //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif
