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???
05/26/10 12:23
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#176190 - Services != products != commodity products...
Responding to: ???'s previous message
When you work as consultant and do a one-off job for a customer, you will have to charge enough for that job to make sure you make a profit.

But if you sell a product, each and every customer may be satisfied. But you may still need to sell 1000 units to reach the break-even where you are starting to make a profit. Having your total customer base buy 800 units means you make a loss. Having your customers buy 1000 units means you end up at +/-0.

This means that there are many situations where it isn't meaningful to even try to create a product because a market analysis shows that there just isn't enough customers to cover the initial startup costs.

So, customer satisfaction is not enough to guarantee a profit. It is just an important factor to include in the calculations. Producing nails, you have a low investment cost so you don't need much customer satisfaction to manage to sell enough nails to recover your startup costs. Having satisfied customers can allow you to grow your business at a faster pace, but the problem then is how you are expected to make your customers so satisfied that they will chose your commodity products instead of someone elses.

So your book has to be adjusted to take into account of you sell services or products, and if you sell commodity products or specialized products. And if the product is expected to sell to few, but selective customers that you have some form of relation with or if you are going to just flood the market with a product. Exactly how much will you let your customer satisfaction affect you when you go out and buy nails the next time?

List of 103 messages in thread
TopicAuthorDate
How to politely ask a "gimme code"?            01/01/70 00:00      
   Sadly            01/01/70 00:00      
      Atmel?            01/01/70 00:00      
   hire someone            01/01/70 00:00      
   Is it polite?            01/01/70 00:00      
      yes and no            01/01/70 00:00      
         That's business!            01/01/70 00:00      
            You will introduce defects => reduced reliability            01/01/70 00:00      
               location            01/01/70 00:00      
                  What this means Jan?            01/01/70 00:00      
                     It means Jan comprehends your situation            01/01/70 00:00      
         male cow manure            01/01/70 00:00      
      Never trust a supplier.            01/01/70 00:00      
         Richard, I wonder ....            01/01/70 00:00      
   What exactly would you like to test?            01/01/70 00:00      
      Maybe just some readings            01/01/70 00:00      
         LMGTFY            01/01/70 00:00      
   What's to write?            01/01/70 00:00      
      or RS232 to 1-Wire            01/01/70 00:00      
   Is that viable??            01/01/70 00:00      
      profit? Profit is nothing! Profit is JUST profit!            01/01/70 00:00      
         And how was anyone supposed to know that??!            01/01/70 00:00      
            Off topic!            01/01/70 00:00      
               Ever so often            01/01/70 00:00      
                  I dont agree!            01/01/70 00:00      
                     Baloney            01/01/70 00:00      
               Totally missing the point!            01/01/70 00:00      
                  I agree and not            01/01/70 00:00      
                     No storm in the thread            01/01/70 00:00      
                        The thread is just debating a larger issue            01/01/70 00:00      
                        in America we have a variant ...            01/01/70 00:00      
                     Only after 5 days!            01/01/70 00:00      
                     contradicting yourself            01/01/70 00:00      
                     You really should have specified the whole task            01/01/70 00:00      
                        I dont agree...            01/01/70 00:00      
                           Totally missing the point again!            01/01/70 00:00      
                              A moment of silence and reflection...            01/01/70 00:00      
                           Cable can not be ignored            01/01/70 00:00      
                           the problem is            01/01/70 00:00      
         Of course profit matters!!            01/01/70 00:00      
         what is the purpose of customer satisfaction ?            01/01/70 00:00      
            Satisfied customer doesn't imply profit            01/01/70 00:00      
               In my book there is no such thing            01/01/70 00:00      
                  Services != products != commodity products...            01/01/70 00:00      
                     never said that            01/01/70 00:00      
                        sometimes satisfaction isn't even part of the equation            01/01/70 00:00      
                           leave it be            01/01/70 00:00      
                              The issue is that every business case most be guestimated            01/01/70 00:00      
                           Horrible Mentality            01/01/70 00:00      
                              Not true at all            01/01/70 00:00      
                              Know your customer            01/01/70 00:00      
                                 more years ago than I am willing to tell ...            01/01/70 00:00      
   don't ask, search            01/01/70 00:00      
      "device find" - shouldn't be necessary...            01/01/70 00:00      
         It's been a while ...            01/01/70 00:00      
            skip rom            01/01/70 00:00      
   Other forums            01/01/70 00:00      
      All fourms are different            01/01/70 00:00      
         The more free code you get, the lower quality            01/01/70 00:00      
         not just you            01/01/70 00:00      
      Come on, Chico!            01/01/70 00:00      
         many posters suffer from the same            01/01/70 00:00      
   One word answer            01/01/70 00:00      
      I think he asked properly            01/01/70 00:00      
         Urealistic expectations            01/01/70 00:00      
            Full agree!            01/01/70 00:00      
               Wrong!            01/01/70 00:00      
                  Totally inadequate specification!            01/01/70 00:00      
                  Most definitely relevant!            01/01/70 00:00      
                  that does not matter at all            01/01/70 00:00      
                     I'm scared!            01/01/70 00:00      
      Thanks!            01/01/70 00:00      
   Take help of ABBA...            01/01/70 00:00      
      Pun, Pune.            01/01/70 00:00      
         *Groan*            01/01/70 00:00      
      More?            01/01/70 00:00      
   Are you all mean with me because I'm Brazilian?            01/01/70 00:00      
      No.            01/01/70 00:00      
         1) nobody is mean 2) nobody is in the ...            01/01/70 00:00      
      No            01/01/70 00:00      
         RE: is it because I am a New Yorker?            01/01/70 00:00      
            Sorry if ignored            01/01/70 00:00      
               Maxium makes an adapter            01/01/70 00:00      
                  Maxim            01/01/70 00:00      
                     So I can not spell :( NM            01/01/70 00:00      
      When the consensus is against you, ...            01/01/70 00:00      
         3. They are genius!            01/01/70 00:00      
            "Simple" (sic) questions            01/01/70 00:00      
            Ask questions if you are lost - don't ignore            01/01/70 00:00      
               power            01/01/70 00:00      
                  here we go again            01/01/70 00:00      
                     power            01/01/70 00:00      
                        Depends what you mean by "simple"            01/01/70 00:00      
                           Second option.. "normal"            01/01/70 00:00      
                              It depends upon the application            01/01/70 00:00      
                                 Test as intended application...            01/01/70 00:00      
                                 I 200% agree...            01/01/70 00:00      
                                    No, people didn't say that            01/01/70 00:00      
                                       I dont agree...            01/01/70 00:00      
                                          Much more forgotten            01/01/70 00:00      
                                          You were misquoting what others said!            01/01/70 00:00      
                                          Help is not necessarily ....            01/01/70 00:00      
      What could be so bad being a Brazilian??            01/01/70 00:00      

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