Etini
Valued Contributor
The ultimate aim of any business is to maximize profit. When we say maximize, we have to know that there is a thin line between maximizing profit and exploiting people. We know business people are naturally capitalistic. But we need to have limits on how we fix prices and maximize profit.
I sell chickens. In my business, I use about 1400NGN to raise one bird from day-old to maturity. I sell at 1800NGN and make a profit of just 400NGN. That is just less than a dollar, but if you spread it around many chickens, you realize I have made huge profits.
I think every business person should fix a price that should not be more than 30% of the total cost of production. Beyond that, I think you are exploiting people. Some people want to recoup everything and would end up fixing prices that are not favorable to the customers.
I sell chickens. In my business, I use about 1400NGN to raise one bird from day-old to maturity. I sell at 1800NGN and make a profit of just 400NGN. That is just less than a dollar, but if you spread it around many chickens, you realize I have made huge profits.
I think every business person should fix a price that should not be more than 30% of the total cost of production. Beyond that, I think you are exploiting people. Some people want to recoup everything and would end up fixing prices that are not favorable to the customers.