5 ms·
You are right of course but there is also the possibility of loss leaders. And many times in business things don't make sense on the surface but play out differ
by larrys 13y ago
You are right of course but there is also the possibility of loss leaders. And many times in business things don't make sense on the surface but play out differently. Perhaps they will have add on items that will generate more profit. Perhaps the amount of people who only order bread alone will be small.
If they get funding they have the staying power to test the market and potentially find profitability. That's the big big advantage of using "OPM" when starting a business. Not guaranteed but not a non starter either.
One big benefit of starting at a low price below costs (if you can) is that it keeps others out who think "we can't make money doing this".