We have never considered any costs as fixed. Therefore we…
“We have never considered any costs as fixed. Therefore we first reduce the price to a point where we believe more sales will result. Then we go ahead and try to make the price. We do not bother about the costs. The new price forces the cost down.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
He treats costs as variable, lowering prices to boost sales, assuming higher volume will offset expenses.
In simple terms: Lower prices to increase sales, ignoring fixed costs.
Key Takeaway
Focus on volume, not cost.
Themes
pricing
sales
cost management
Mood
strategic
pragmatic
Type
business
marketing
When to use this quote
- retail pricing
- product launch
- sales promotion
Key Concepts
economics
market dynamics
Questions to Reflect On
- Will customers buy more at lower price?
- What if demand is inelastic?
A Different Perspective
Assumes demand will rise enough to cover lower margins.