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This is question of business strategy. Some businesses are one step, others two step, or many steps. Two (or more) steps, mean, that business strategy based o
by simne 5y ago
This is question of business strategy.
Some businesses are one step, others two step, or many steps.
Two (or more) steps, mean, that business strategy based on assumption, that very large share of clients (95% or more), will after 1st transaction return and buy something other, so first transaction could been subsided by second or by third, etc.
Even more - in multistep businesses, on first transaction, business could pay client money for taking product or for using service, planning that on next step(s), client will return all money.
Most known example, jet printers, which sold unprofitable, but profits on ink sale returns all investments.
Similar business where Kodak (sell cheap cameras, profits on film and on services); Xerox (give copy machines basically for free, collect payments on each copy).