Re:Justice at Spotify
by pwinnski on Tuesday March 16, 2021 @01:59PM
(#26480462)
Is "charging so little you can't cover your rightful costs" bad at business? Then yes, I believe that Spotify is bad at business.
Hypothetically, my profit margin making widgets would be better if I could just pay my raw material provider half-price. I could pay them half-price, add, say, another one-third of that to cover other costs and overhead, and probably dominate the market since I could charge less for my widgets than any competitors who have to pay the full raw material costs.
Again, bad at business? Depends on who you're asking.
Hypothetically, my profit margin making widgets would be better if I could just pay my raw material provider half-price. I could pay them half-price, add, say, another one-third of that to cover other costs and overhead, and probably dominate the market since I could charge less for my widgets than any competitors who have to pay the full raw material costs.
Again, bad at business? Depends on who you're asking.