Saturday, 11 July 2015

WHY YOU NEED TO PRACTICE FORWARD INTEGRATION

There are several reasons you need to cut away that guy you call the middle man if you really need more cash. The middle man you see there is also in to make profits and not there only for the purpose of getting you to the final consumer. The person the middle man sells to is the middleman’s customer and not yours. Your customer is the middle man. In the first episode of Marcus Lemonise’s TV series the profit the manager at Car Cash was asked to take out all persons who acted as middle men and sell directly to customers and this was intended to increase profit. The middle man will not sell to his customers at the price which he buys from you the producer. A margin is added to the item bought before finally being sold to the final consumer. This gives the middle man his or her income, which is the main motivation for the presence or the existence of a middle man [the making of unnecessary profit which can be avoided and made by the producer]. The profit made by the middleman can be made by the producer at a cost or nothing at all. The cost of making this profit which is made by the middleman is the cost of getting to the consumer who needs the product. The elimination of the middleman and selling directly will increase the profits made by producer

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