It’s a simple equation: the more customers you get, the more money you make. I’ll do a quick run down of how the math works.
There are three ways to increase customer volume:
Pays for itself
Lets say your average sale is $50. You start with $19. You charge $14 for everything.
$19 + $14 = $34.
Add 10 customers for a total of $50 (and you have $50/25). Multiply your charge by $20 for $40. So, it makes $50/30.
That means your average profit will be $40 (after the first 10 customers are paid). That means it sells for $60 after the first 10 customers. Multiply $40 by $20 and you have the following:
$0.01 + $20 = $0.1
$10 + $0.1 + $0.1 + $0.1 = $40.
$0.01 + $20 = $0.1 = 45%
That’s why your profit will never go below 0%. You are paying for itself.
Free to customers
This isn’t a trick, I’m not doing anything that isn’t free to customers! Instead of charging them $15 for everything, charge $30 for everything.
You can then give them free stuff if they sign up. Or you can just give them everything.
You could also just charge what you want and give away everything, but that’s just a waste of money and will never get customers. Also your free to customers will not even reach their average sale because you will only get a few people paying $30 for 50 things.
Keep in mind, you could charge your free to customers 10 times the amount you charge for the same things. That’s what people do to save money on things. People won’t be using the stuff they could have spent money on.
Pays for you
The trick is that you have to charge your customers something for free to get more money. Or at least that’s what the economics will tell me, but who isn’t convinced that the market has a lot in common with the computer market? It’s more like the market is trying to mimic the logic of a computer market.
So, you could charge something to all customers, but what if you charge $20 to a customer?
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