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Showing posts with the label prime costs

Just my thoughts #0761

To be complex, one must first be simple. Because, unless it’s simple, it’s hard to get complicated. Every complex problem is a combination of simple problems. People tend to think that intelligence is complex. However, in hindsight, memory is just a continuation and connection of simplicity made up of thoughtful ingredients. Still, it is burdensome and complicated to find simplicity in an already complex system. Therefore, the pursuit of simplicity is a burdensome decision, one that requires a willingness to understand this complexity first. Growing up in the mind means taking on this burden and being willing to take on the challenge of finding simplicity in a formally complex system. It’s like a child taking their first steps, trying to get up while risking falling with their whole body. - Joseph’s “just my thoughts”

Just my thoughts #0500

In an exchange economy , where goods or services are well-made and exchanged for one another’s needs in the market, rather than through barter , ‘ price ’ holds significant importance. The key to business success lies in understanding the prime cost and establishing a ‘price’ based on that cost. If sales surge when a product that typically does not sell well is offered at a very low price, there must be a reason for the low price, as well as an explanation for why it does not sell at a higher price. The price results from the interaction of producers, consumers, and all other market variables . To identify the causes of problems in your business, you must first examine the price adequacy of the product or service you are selling. Price is not merely a number. - Joseph’s “just my thoughts”

Just my thoughts #0379

The prerequisite for working is to earn a profit. Profit is defined as revenues minus costs and expenses. In other words, you must incur costs and expenses before you can make sales. Profits arise when sales exceed costs and expenses. If I overlook this straightforward reason, the harder I work, the more I will struggle and negatively impact others. Behind the concept of generating significant revenue lies an oversight of the importance of making a profit. Increased revenue also leads to more significant expenses. The total costs and expenses associated with making sales are referred to as prime costs. Many businesspeople in this world are unaware of prime cost structures and focus solely on boosting sales. - Joseph’s “just my thoughts”