tag:blogger.com,1999:blog-11336670.post1337045105023567679..comments2024-03-13T03:24:01.167-04:00Comments on Marginalizing Morons: Marginalizing RevenueCaptiousNuthttp://www.blogger.com/profile/14440029537418230507noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-11336670.post-59783154318689514352009-03-24T11:01:00.000-04:002009-03-24T11:01:00.000-04:00I would agree-a business founded upon low margins ...I would agree-a business founded upon low margins is probably a bad idea. Although Wal-Mart would beg to differ. Low margin business should be an add on-not the core. <BR/><BR/>Slow out.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11336670.post-9826817156093242982009-03-24T10:47:00.000-04:002009-03-24T10:47:00.000-04:00Yeah, I'm not buying it.I don't consider what I do...Yeah, I'm not buying it.<BR/><BR/>I don't consider what I do a *business*. It's professional gambling against other professional gamblers. The term *revenue* with us is misplaced.<BR/><BR/>What I don't like about low-margin business is that I see fixed costs as more than likely to rise - almost always. And I see that competition will also more than likely rise - for just about every product. Taxes will rise. Etc.<BR/><BR/>I'm not saying that all low margin businesses are stupid or destined to fail.<BR/><BR/>I'm just <B>Marginalizing</B> them a bit - in the same affectionate manner that I have <B>Marginalized</B> my parents, my MIL, Ken Lewis, and Barney Frank!CaptiousNuthttps://www.blogger.com/profile/14440029537418230507noreply@blogger.comtag:blogger.com,1999:blog-11336670.post-78406586427584806392009-03-24T10:23:00.000-04:002009-03-24T10:23:00.000-04:00When you sell an stock, ETF, option, etc. for less...When you sell an stock, ETF, option, etc. for less than what you hoped for you are doing low margin business. But you are in fact generating revenue. Some is better than none. Maybe that is the best analogy.<BR/><BR/>Slow out.<BR/><BR/>Again.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11336670.post-69546074165657523062009-03-24T10:12:00.000-04:002009-03-24T10:12:00.000-04:00Not being in a physical business it might be an od...Not being in a physical business it might be an odd concept. I am not sure I can explain, nor am I sure you care, but let me try anyway. There are really two things I am after by seeking low margin business. 1. It drives cash flow. You know what happens when you run out of cash. 2. It also helps reduce your inventory costs by turning it over faster. the more of an item you can make or buy, and I do both, the less they cost. Most businesses have fixed costs-overhead along with minimums they have to meet to order product and raw materials. If you are under utilizing your resources-inventory, space, machinery, staff, etc, you need to either reduce it or find new business. You can only reduce costs to a certain point-once you are there you need to increase revenue in any way you can. Otherwise what do you do? Close up shop? Maybe for some, but not me. If your low margin business takes away from your high margin business then you are in trouble. As long as it adds on without taking away it is fine. Of course, when things are going well you don't seek out. When times are tough you are more open to exploring it. <BR/><BR/>Maybe a little disjointed-but that's the basics in a nutshell.<BR/><BR/>Slow out.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11336670.post-35444776676976066882009-03-24T09:31:00.000-04:002009-03-24T09:31:00.000-04:00On one level I don't consider low margin endeavors...On one level I don't consider low margin endeavors *businesses* at all.<BR/><BR/>Unless inventory and operating costs are negligible.CaptiousNuthttps://www.blogger.com/profile/14440029537418230507noreply@blogger.comtag:blogger.com,1999:blog-11336670.post-73611765518591499482009-03-23T08:59:00.000-04:002009-03-23T08:59:00.000-04:00You have to generate revenue before profit. Low m...You have to generate revenue before profit. Low margin business is better than no margin business. One way to fight declines is to seek out lower margin business to tide you over until the better margin stuff comes around. Do what you have to do. That is one reason why you see such an emphasis on revenue these days. <BR/><BR/>Thoughts from a non-skimmer.<BR/><BR/>Slow out.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11336670.post-91900331883978516672009-03-22T12:19:00.000-04:002009-03-22T12:19:00.000-04:00Skimming sounds like a lucrative business. Isn't t...Skimming sounds like a lucrative business. Isn't that term an apt description of the "bail out" bills for the rich and infamous?<BR/><BR/>-- Sir PadgettAnonymousnoreply@blogger.com