Tuesday, July 25, 2006

When to start and quit

Re: [spiers] When to start and quit

Olivia,

It seems the US Education and media always assumes one wants to get the
economies of scale that high volume brings to business, and this is true when
one competes on price as in the case of WalMart.

But there is anbother basis on which to compete, and that is design. When
competing on design, exconomies of scale are irrelevant, and we do not work to
lower cost thru volume.

Whereas a "conservator' may get $5000 in orders in six months and seek to get
$10,000 in orders within another six months, ever gaining more volume, an
"innovator" seeks to gain say $5000 in orders in six months, then $5000 in 3
months, then $5000 in 6 weeks, $5000 in 3 weeks...ever increasing frequency.

Frequency is critical to remaining able to react quickly to market changes, and
not getting caught with too much of what once sold, and may not anymore.

John,

On your comment to last entry, please explain:

Y'all recall we work only on
frequency, never in volume at the small biz level.

Olivia


0 comments: