My BIL is starting a new business, selling trinkets and doodads and whatnot - think airport gift shop - engraved with whatever the customer wants. Not a bad idea, I guess, though I’m not sure how good the market for these things is.
Anyway. He’s planning on selling these for as cheap as he can, and when I pointed out that his current price plan means he’ll be losing money on each transaction (due to overhead, etc), he said, “Oh, don’t worry, we’ll make it up on volume.”
I didn’t take Economics 101 or anything, but, um… how? I don’t Get It. If you’re losing money every time you sell something, and that’s your only source of revenue, then HOW do you ever ‘make it up’?
Is this one of those things where people just want to believe and are deluding themselves?