Quote:
Originally Posted by Brutha  For a lot of products there is a high fixed cost to develop the product and a low cost to dublicate it.
It isn't.
A product has a different value to different people. A copy of photoshop CS3 has a different value to me (a student) than to a grafic designer who uses photoshop 8hrs/day to earn his living.
Selling a product through the "traditional" way requires huge set up cost in marketing. You have to tell everyone about the product.
Doing MLM instead requires much less setup cost for the business.
A "fake" rolex can have a tenth of the price of a "real" one and provide the same value to most people.
Why? The customer pays for the brand(with is build through marketing), when he buy's the real one.
There is AIDS medication that has costed twenty years ago over 100 times what it costs now.
Do you thing the people who brought it twenty years ago made a bad deal because the payed so much money for the medication?
After all AIDS medication seems to be a good deal for the price people who have AIDS pay at the moment for the product.
There are unethical people who work in MLM and ethical ones. |
You said it really kool, But Rolex duplicates C.P. is not same as the C.P. of the branded ones. Because the brand building done by rolex through advertising also adds to the C.P. of rolex watches.
Hence the c.p. is always constant
Formula for C.P. [Manufacturing cost + Distribution cost + Advertising Cost + many other similar cost]
Value depends on 'supply and demand' [hence, you can say it depends on price of the product, which is obviously decided by supply/demand] not on personal beliefs but on a general beliefs of all the consumers regarding the product.