Math is hard—but not in the academic sense. It’s hard on the businessman. Everywhere someone turns, there’s some overhead to making a product. Nothing really costs as much as it sold for—there are too many costs to recuperate.
And this is a hard truth to swallow sometimes, especially when someone just starts out in the world of business. Faced with it, people have tried to lower costs and made their products inferior. We’ve got a whole world of people who choose that option. The other side of it, of course, is jacking up prices too much, too high, in some attempt to getting a good deal on returns.
Sadly, here’s the truth of it: even the most successful businesses that deal with physical services, that sell physical items, have very narrow profits.
So, what’s to be done? What is there to do about the problem?
Well, it’s so simple it sounds stupid. You must do more, produce more, sell more, advertise more. If your product makes a profit, then the way to make more profit is to make more sales, and scale upwards. Invest in better training of employees, better equipment to do things faster. As you go up in speed, but not down in quality, you can finally widen those margins.
Competence is a slow game toward bigger profits. Expansion must be earned, and once it is earned, fought to hold. A single percent raised after you’ve earned it is going to be a tremendous amount of money.
Don’t cut corners, don’t overprice. These may seem helpful in the short term, but both are bad for customers. And things that are bad for customers will eventually be bad for you.
Instead, just be better. Constantly. Though hard work doesn’t guarantee success, working hard towards the right plans is all we can do.