Sunday May 26, 2024

The main reasons for low profit

the reason for low profit

The third reason is inappropriate advertising, which creates customers not for you, but for other companies, including competitors. With this approach, you spend your money on activating other people’s ideas, getting not into your target ideas, but into someone else’s, as a result of which demand for goods and services of other companies is created. These companies get free clients and thereby increase their profits at your expense, while you either get low profits or do not get at all.

This is a very common situation and it is connected with the fact that there are no preliminary studies to determine which ideas need to be activated to create demand for your goods and services. The situation is paradoxical, because it seems that ideas are being activated, but there are no sales, and in appearance, if you don’t know your target ideas, everything looks like real advertising, which complicates the search for reasons for low profits.

The fourth reason is the idea–free advertising

The fourth reason is the idea–free advertising. As mentioned above, advertising is the activation of an idea. One idea can only be activated by another idea. But very often attempts are made to activate the idea with thoughts. Everything is done correctly, according to technology, but instead of an idea, a thought is broadcast. Money and time are spent on getting it and making it into communication. Moreover, the money is planned to be returned by creating needs and, accordingly, sales.

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