Ulterior Motives

It’s important to look at the big picture to understand why people and organizations do what they do.

As an example, why do companies sell a product at a loss or even with a small margin? Looked at from a micro level that might seem like a bad decision but macro level you might see the real picture. Companies might sell a shaving razor at a loss know they will more than make up for the lack of profit by selling the razor blades at a significant markup.

Another example is selling an entree at lower margin and making up for it with the beverages, side dishes and desserts.

Looking at the big picture will allow you to determine the ulterior motives that might make business make more sense.

Have a great day!