Subject:
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Re: Why do Lego rip off UK customers ?
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Newsgroups:
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lugnet.market.theory
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Date:
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Tue, 13 Mar 2001 01:18:53 GMT
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Viewed:
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1021 times
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In lugnet.dear-lego, Lawrence Wilkes writes:
> 4. you can sell half as much at twice the price and make the sames revenue -
> but it doesnt keep those expensive factories employed
That depends on the profit margin. If you sell half as much at twice the
price, and your profit margin is 50%, then you make the same revenue but
three times the profit. If your profit margin is 25%, then you make five
times the profit. (Somebody double-check my math.)
--Todd
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