Sharing Daily Discoveries About Personal Finance And Business Topics

If Something Makes Too Little Money

I was reading a press release for a company that has decided to close down certain service offerings as compared to the other categories of its business it simply generates peanuts in comparison. So therefore it seems like they instead want to focus in promoting what seems to be generating most of the income. This is kind of an interesting debate at times as this isn’t a situation where they are losing money but rather certain categories of the business are simply not preforming as well.

Would you cut off income sources where it still brings in money but the only real factor is that it doesn’t bring in as much as other things? I know it is different for stores such as if certain products take up too much inventory space where you could be using that space to display more profitable items.. However, imagine as if it was like an online digital movie rental business where 70% of your profits seem to come from people downloading comedy movies. Therefore, obviously the other categories in comparison are bringing in very little. Like for that would you be inclined to cut off every other movie category and just focus your business in providing comedy movie downloads?

Like in that case I would be inclined to keep it still where instead my train of thought would probably be how can one get these people to also download movies from the other categories too? It’s completely different of course if it was a constant money drainer. In this case it just makes me think how there would probably be millions of people who would be more than happy to even have that 30% of success that they are throwing away, so to speak. I suppose competitors will love it though as people will need to find a new vendor, so to speak.




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