Today I bought a $20 sofa at IKEA. The sofa is worth $300, so IKEA is losing money. I’m so proud of my cleverness, deceiving IKEA into selling me such a large sofa at less than their cost.
The sofa required legs of course, which were an additional $20. No problem, because $40 is below the manufacturing cost. Also, the sofa requires a cover, which costs $250. And I needed to transport it. And pay interest to the credit card company. So I only paid $350 for a $300 sofa.
Giving away your art for free is a stupid idea. But selling it for an alluring price, with necessary but expensive add-ons, can sometimes be a good strategy.
Amazon sold kindle devices at a discount until their ebook format became a way of life for people like me. Now I frequently buy ebooks.
Does your career have a device or institution or element which could tie customers to you?
Published by Brock Stout, PhD
Brock has helped many people to be extremely successful. He has lived in various countries and has enjoyed several careers, but is now a writer and a career coach.
He sustained mild lead poisoning as a child, resulting in neurological damage. The result was a life of learning disabilities, always struggling to keep up.
But he completed two degrees from competitive universities, then advised Wall Street executives in Asia for 15 years. He later earned a PhD and worked as a university professor for six years. He has started three profitable companies in between.
So he particularly wants to help those with special learning challenges. Because so many of us now have these special challenges, they are no longer special. But they are challenges. He wants you to TEACH YOURSELF how to be successful.
View more posts
One thought on “Losing money is a good strategy”
Update: the box contains a completely different product, and did not contain all of the parts for that product, so it is worthless. Should I spend two hours in line (plus 10 hours in driving) to return the item?