"Companies can't grow if they can't hike prices". Can someone eloborate on this one.
2007-01-30 06:27:57 · 3 answers · asked by rocky 2 in Business & Finance ➔ Corporations
Businesses need to make a profit to re-invest in themselves. However, you can increase profits by lowering your costs and by simply selling more of your goods. I don't agree w/ the statement.
2007-01-30 07:10:44 · answer #1 · answered by InvisibleWar 2 · 1⤊ 0⤋
this is a falicy of sorts. Yes prices must increase with inflation, but look at a costco or wallmart, what they lack in profit margin they make up for volume. Furthermore in theory a larger company that has grown more or is growing more would be more vertically integrated thus being more profitable at lower prices than the competition.
2007-01-30 15:57:30 · answer #2 · answered by nigel 3 · 1⤊ 0⤋
Well, every company has to make a profit in order to grow or simply be. In order to make a profit, the price that is charged must be greater than the price it actually costs.
2007-01-30 15:02:36 · answer #3 · answered by happybirthday 3 · 0⤊ 1⤋