03-12-2018, 10:55 AM
(03-09-2018, 11:46 PM)Benton Wrote: A few years ago my former employer called me in to let me know that prices were going up 25% on copy sales, 20% on advertising rates. No exceptions. When I argued we'd lose at least 15% of our readers and about 20% of our advertisers, the corporate guys said 'don't worry about it — you'll have to lose 25% of your readers to notice the drop and just increase rates 25% to make up for the loss in accounts.'
That was the answer. Not keeping more customers, just setting rates high enough to get a 10-15% overall increase in profit over the previous year.
Ford, Chevy, etc isn't concerned with Bob Smith in Dayton being able to buy a moderately priced $12,000 car on his $30,000 a year salary. Not when the profit margin is much better on John Smith buying an over priced $60,000 SUV that costs nearly the same to manufacture.
You can tell a business is in trouble when they raise prices (that aren't related to a raise in costs such as raw materials) rather than try to increase sales. uSA Today kept doing that, and I just stopped buying it.
“History teaches that grave threats to liberty often come in times of urgency, when constitutional rights seem too extravagant to endure.”-Thurgood Marshall
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