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How so? You have to keep paying for everything, or your profits will be taken away. Your profit potential is always and only limited by your ability to cover co
by thaumasiotes 2y ago
How so? You have to keep paying for everything, or your profits will be taken away. Your profit potential is always and only limited by your ability to cover costs in advance. Saving on necessary expenditures brings you zero benefit, because any necessary expenditure that you eliminate must be replaced by an unnecessary one, or profits will go down instead of up.
- natpalmer1776 2y agoThe same way the tech industry currently does it. You spend all your profit on research, product development, marketing, etc. to increase your overall revenue when (in the short term) you could simply stop spending money on all those things and keep only enough engineers on-staff to keep your existing products stable and customers happy. By comparison, a construction company cannot stop buying materials in order to continue generating revenue, and they cannot reduce their workforce significantly and continue taking on the same types of jobs. In the instance of Bell Labs, those researchers were the 'unnecessary to business' route through which to increase revenue (by both increasing costs and also building a technology-based moat) and since those who control a company typically only profit by 'skimming the cream' increasing revenue without increasing profit seems like an excellent way to increase the value of the company to those who are interested in doing so.