FOSS Solutions
Doghouse
We shape our tools and thereafter our tools shape us.
One of the points I try to make in any presentation is that people pay money for perceived value. If they do not perceive any value, they typically do not part with their hard-earned money. The more value they perceive, the more money they pay.
Value is often generated through a transformation. Food is grown, and a transformation of water, earth, sun, and work generates the food. This is why manufacturing usually generates a lot of money. The transformation of raw materials (wood, glass, rubber, cement) into a house or car is something that generates a lot of value; therefore, people pay a lot for those things.
Modern manufacturing, with many processes automated or produced by inexpensive labor and combined with high levels of competition, mean that many products are reduced in cost and that margins are squeezed to a relatively low level. Large volumes of manufactured goods generate the large profits of some companies, and if your products are unique or protected by patents or other methods, you may gain even higher profits. In the end, however, it is the customer's perception of value that generates the sales and profits.
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