It is possible to be smart about profitability.
they are relevant for business owners, freelancers, and stock market traders.
there are few ideas I know about profitability, here they are:
the first one is:
The profitability is in the mix
profitability arises when it is hard for people to evaluate the value of something, the more it is vague, and unknown the more crazy numbers you see.
you see it like coca cola in the restaurant costs more per liter than in the supermarket.
I think it is basically a mix. for example a mix of situation and product, It could be various mixes, multiple products,product +service, product+service+insuriance, …
a mix is when you do not describe the specific cost per item mixed in.
lower prices per item, larger percentages
from 10 cents to 15 cents it is 150% gain
from 1.10 dollar to 1.15 dollar it is lower percentages.
or price change from 1$ to 4$ the percentage is different vs from 101$ to 104$.
it is applicable in the stock market to have better percentage profits.
similar to this is 1.5 dollars stores, where every item costs 1.5 dollars , the profitability in percentage is huge, and there is also the following.
one exception is that very large projects, are also very harder to estimate. so there is a huge estimation error. so in government projects for millions, there is also a very large percent of profitability.
unless I am there the very small prices is more actual for me.
lower prices per item, people less think
when the price is low people tend to don’t care about the money.
you see it in apps in the smartphone markets.
or there are in-app buying of many low-cost items. like after people use the app there are small offers that help those who buy to be more successful than others in that app. be more brag-ful , have more features, and be high on ratings.
this comes closely with the availability of items like making an app to order pizza people easily will order more pizza. or order anything else because it is easier than ever to press order and they think little about it because it is a low price item.
The profitability is in the next stage
there are things that it is hard to distribute and consume by – someone telling about it. like things that cost money. there are things that it is easy to distribute them by – someone telling about it. videos online are satisfying in 30 seconds. articles and content that are free. are easy to distribute. Low-cost products are also like this.
however, after someone is paid he/she is already a customer. and he/she is ok with paying and he/she knows the quality. and you have a relationship with her/him. he/she knows then you as a brand. you are in their head.
after they like you. then you can sell a very large cost item. for example, I had advertised a product for large businesses. it was a small service with a medium price, but I sold it at 50% of prices in the market. after he knew I am a good person and good problem solver I sold him a big deal of service for tens of thousands of dollars. this is a simple strategy to be invited in the door. after you are in and they trust and you tell what you have.
it is similar now on websites like after people see article then they might give you their email or subscribe or download or listen to a podcast. or register to readers group on facebook, or WhatsApp group using a form with their name and phone number.