Joseph's "Just My Thoughts"

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”

The physical value of a book is a measurable cost of paper, printing, and labor charges , but estimating the value of the book’s contents is difficult. Most intangible values are similarly challenging to assess. We purchase the intangible value of a book at its physical price. When revenues are generated, the added value produced can be realized. These revenues arise solely from sales, which are based on price, not value. In essence, there is always an imbalance between price and value , and this imbalance determines whether one is wealthy or poor. Management is the act that shifts this imbalance in my favor. - Joseph’s “just my thoughts”

Peter Drucker stated that marketing is not the same as sales; instead, it aims to make sales unnecessary. He also mentioned that marketing is not just the final step in production but occurs at every stage from beginning to end. Furthermore, a company’s functions can be categorized into marketing and innovation. While sales are vital for generating revenue, it’s crucial to grasp the concept that marketing makes sales redundant. Many companies struggle because they fail to understand this concept and incur losses from unnecessary expenses. - Joseph’s “just my thoughts”

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”

Online sales surpassed offline sales as a result of the global pandemic. Nowadays, people are purchasing signals instead of tangible items. The online environment is a web of signals. If the signal presented by the interface is not trustworthy, purchasing is not possible. For a long time, stocks have been traded based on signals that represent rights without requiring physical stock certificates. The same principle applies to gold. The challenge arises because both the tangible item and the signal react based on their value, but human greed leads to an oversupply of signals. This happens because creating a signal is much simpler than producing the actual item. The fundamental issue is that the signal serves as a representation of the tangible item. When there are more signals than tangible items, this discrepancy is termed a “bubble.” In offline contexts, signals are known as “cash.” Essentially, money is just a signal, and “trust” is crucial for believing in that signal. - Joseph’s “j...

A surplus value is generated between the stages of consumption and production. The linking of production to consumption is referred to as "sales," in other words, doing business. The values added result in an increase in assets. Consequently, the refund of value-added tax (VAT) does not signify the return of lost profits, but rather the loss of business revenues. This is an unfavorable outcome. - Joseph’s “just my thoughts”