Which business profit model do you prefer?

[bosede1]

I would prefer a Business model that is going to make a profit all rounds and by this, I mean to profit from the poor and the rich. But generally, this can be mostly determined by the business you are into, there are some businesses mainly for the rich, some both and some poor.

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[beerlover]

I still can't get how you are thinking that developing some project can cater to both needs. These are two different groups differing in terms of income, standard of living, health conditions, employment, social status and so on. Catering to the rich might get you bigger profit per sale but lesser in frequency and opposite in poor.

Again there will always be a target audience for each project. But it would be difficult to market to both groups.

I am not saying it's impossible but seems unrealistic to me.

I would guess that one company could create two different products that cater them both. Like rich people and poor people all use facebook (maybe you think Jeff Bezos doesn't, but millionaires wives still do) or instagram, we see poor people and rich people there. Or a company that owns a lot of cows, they could sell cheap milk, or they could build almond milk or whatever or organic and so forth bla bla, and sell two different products.

One clothing company could create a basic shirt, and sell it to everyone for cheap, whereas they could create expensive coats and sell it to rich. All in all, there are methods where EVERYONE could buy from you. Biggest example has always been social media. Look at twitter, Elon Musk, worlds richest person tweets probably more than the poorest person in the world, and both help twitter earn money from the ads.

[STT]

This idea of poor people is the not the best for business to consider, if you have a product to increase efficency of the customer in some way you will profit and customers will find a way to afford your item.  A farmer can be a pauper in the wrong harvest or the richest man in town in high demand.   Think of it in terms of revenue, anyone who wants to truly have a successful product must engage an entire country, then you have all sorts of benefits from that popularity.
   What tends to happen in a modern economy is the product is first modelled to sell high premium to early adopters and later on achieves scales of economy benefits from mass production and efficiency makes the product available to all.   The ironic thing is the largest profits come from the most common sales to quite modest budgets in the majority of the population.

[Obito]

If the first idea is a real thing, I think we'd have it by now, I think that I will choose the second one because if I am being honest, I am sure that I will become greedy when I taste large profit and I know that I can make more money without caring for other people but if I have my good side. How about I propose another model in which I profit mostly in the early stages and then eventually move to making sure the poor gets more benefit, for me it's a win-win.

[darewaller]

If the first idea is a real thing, I think we'd have it by now, I think that I will choose the second one because if I am being honest, I am sure that I will become greedy when I taste large profit and I know that I can make more money without caring for other people but if I have my good side. How about I propose another model in which I profit mostly in the early stages and then eventually move to making sure the poor gets more benefit, for me it's a win-win.

It is a real thing and we already have it today, not only today but it did already existed before, I am talking about malls. On the malls there are rich people inside it and they can buy those expensive items like apple products for example. On the malls again, there are also poor people that shopping on them, they usually eat or do groceries.

There are different kinds of food stalls inside a mall and most are very affordable for the poor but there have only one grocery store in them though the items that they sell are not all expensive. In your case, it looks like you want be rich first before you will help the poor? That's fine and that usually happens. Many rich are ones poor and they help the poor because they know hard their life is.

[Lubang Bawah]

Before Covid or 2 years ago I worked in the office and while selling fruit that my wife did, my experience selling fruit is a very risky thing because a lot of fruit will rot if it is not sold, this is what makes me give a high price to cover losses if rotten fruit, and the profit model of fruit is constantly improving.

[gantez]

How about I propose another model in which I profit mostly in the early stages and then eventually move to making sure the poor gets more benefit, for me it's a win-win.

Most people who have made money and promise to helping the poor ended not to be helping like they make the promise. Promise is different from the realistic plan and action to achieve it. This your business model is very good but the experience that the poor are getting nothing from the promise at the end of it, is the problem.

[Doan9269]

Profitability is the income generated from the operation of a business, as a business man or woman it doesn't really mean if customers are rich or poor, what matters most is when all requirements of your business are  met by them  in paying for the services demanded from them to you both of you are doing each other favor.
As per my own choice,  so far  I wanted to improve my working capital I would rather preferred selling to both rich and poor.

[stomachgrowls]

Profitability is the income generated from the operation of a business, as a business man or woman it doesn't really mean if customers are rich or poor, what matters most is when all requirements of your business are  met by them  in paying for the services demanded from them to you both of you are doing each other favor.
As per my own choice,  so far  I wanted to improve my working capital I would rather preferred selling to both rich and poor.

For a business then you would typically be minding on what specific market you are tending to dive in.Its true that there are business which are solely focused for rich people but to know that not all the

time you would really be making out sales or something in particular in talks about profits unlike into those low to average type kind of affordability on where everyone could touch on then
it is likely to sustain out but everything would really vary on the  demand because not all will really succeed when you do tend to built up a business.

[taufik123]

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Again there will always be a target audience for each project. But it would be difficult to market to both groups.

I am not saying it's impossible but seems unrealistic to me.

The target audience or customers of course have to think about the economic level in an area as well. If you really want to reach all the products, you have to be at a price that is not too cheap or not too expensive. So that the rich and poor will be able to enjoy it. This will also affect the development of the business that is being pioneered. Also pay attention to the quality of the product even though the price is still relatively cheap.

[Captain Corporate]

 Reaching to both rich and the poor could still happen. People think that very wealthy people all live in yacths and eat caviar every single day. Even though that could be true on some days, even they end up eating at mcdonalds, probably just order it and not go to one, but they still do. Which means even the simplest things could be bought by the rich AND the poor. The difficulty comes when you want to offer two different price points. If you want to have a product that is 10 bucks or whatever for the poor, but under the same company have one for 10k dollars as well, thats not going to be easy to pull off.

 Easiest way right now is branding, if you keep doing branding and get your name out there, then you will be able to charge anything you want depending on your reputation. Apple literally made a killing with this. They have the same tech as some other computers, and charge more, or have some phones and charge more. You may not be that big, but a plain white shirt could be sold for 50 bucks in some brands and thats what you need to focus on if you want everyone to like you, rich or poor.

 I prefer to deal with zero though, zero costs, zero spending from customers. Make the users your product. Look at facebook, instagram, tiktok, youtube, and a billion others. Make a free product, and the bigger user number you get, the more money you will be able to charge for marketing or anything else.

[merchantofzeny]

It's a difference between faster or slower turnover but it could also depend on the product or service being offered. I'm more biased towards the smaller profit but quicker turnover since we sell cheap stuff. Cheap stuff is accessible to ALL so you'd have a larger market, the main challenge is keeping the business afloat despite the low bottomline.

Expensive stuff have the opposite problem, the profit from just a couple of sales is massive coz it's possible to put a very high markup (think jewelries which are worth more than triple the material used) but because of that you'd have a smaller market.

[jaberwock]

The target audience or customers of course have to think about the economic level in an area as well. If you really want to reach all the products, you have to be at a price that is not too cheap or not too expensive. So that the rich and poor will be able to enjoy it. This will also affect the development of the business that is being pioneered. Also pay attention to the quality of the product even though the price is still relatively cheap.

When you are doing business, it is not just all about the price, I think what really matters is how useful your product is. The product you are selling, do people really need it? If it’s a product that nobody is going to need, or people rarely needs it, then it doesn’t matter the price that you are selling it, nobody will be ready to buy it.

So, the first thing in business is to make sure that you have a good product to sell, and once your product is good, and the price of that product is also moderate, then even the rich and the poor would be going for it. So, the main focus in every business should be on quality and knowing what people really needs.

[verita1]

We need to eliminate poverty. Any business that is destined to production, construction would be ideal for today's world because they are the ones that supply basic needs. My thought is focused on people's desire to have a job while the economic sectors are active there will be a better quality of life. A business to be richer, perhaps we should get rid of this idea and think about more equitable wealth.

[Doan9269]

I've been giving this a lot of thought lately, Which kind of  business model would you prefer, will you prefer the kind of business where profit can be  from both the rich and poor, that is huge profits occasionally and small profits daily?

The two model is essentially important in a business as a businessman, one is expected to be dynamic in the sales and purchase of the commodity items and  same also applies to the cash flow, but the summation of the two models bring about a good arrival at a maximum profit realization.

A small commodity item can be sold and derived a huge profit while a big item been sold with a little amount of profit realized,  but the only things that must be kept constant in doing business is a continues flow of the market whereby a particular goods or service does not take long before selling off.