Surf industry paradox: Surfing, by its nature, contradicts basic capitalism

Re:Surf industry paradox: Surfing, by its nature, contradict... by Retric on Friday February 07, 2020 @03:57PM (#22270843)

Not necessarily, high end chocolate is often a brutal low margin business. Generally, food companies increase profit margins by lowering quality.

Massive companies also have low average profits, but it’s not low quality driving down profits so much as growing to the edge of unprofitability because high profit margins are not inherently as useful as total profits. If say Budweiser increased their price by say 10c a can their overall profit would decrease even if their profit margin would increase.

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Re:Surf industry paradox: Surfing, by its nature, contradict... by lurquer on Friday February 07, 2020 @05:22PM (#22271753)

If say Budweiser increased their price by say 10c a can their overall profit would decrease even if their profit margin would increase.

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That's not neccesarily the case. The ideal price point for maximum profits is ever-changing.

Would Budseiser's profits increase if they lowered the price by $0.10?

The answer is the same: it depends.

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Re:Surf industry paradox: Surfing, by its nature, contradict... by Retric on Friday February 07, 2020 @08:40PM (#22273114)

While I don’t disagree with your point, I am going to assume a company like Budweiser is going to be very good at selecting a nearly optimal price.

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