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It does that in a one-sided way though. Do car dealers create value for car makers, or the other way around? The way revenue is measured seems to imply that ret
by quicklime 6y ago
It does that in a one-sided way though. Do car dealers create value for car makers, or the other way around? The way revenue is measured seems to imply that retailers are the ones who create value for manufacturers, but not vice versa.
In that sense, revenue is more of a measure of “how long and costly is your supply chain, and how close are you to the customer facing side of it?”
- ChrisLomont 6y ago>Do car dealers create value for car makers Both - read about consumer and producer surplus in econ. > The way revenue is measured seems to imply .... Revenue estimates how much buyers were willing to pay for the product, but each buyer retains their surplus, so revenue undercounts the value to the buyers. But it's a decent representation of value added.