Quote:
Originally Posted by Fritzly
Besides the fact that I have a Master in International Economics a strategy like the one you describes is the one that an inept management, unable to correctly estimate the highest selling point for product, would ended up dealing with.
The ability to determine the highest price potential clients are willing to pay for your product is not an empiric task or the results of some kind of guess; it is an extensive and complicate tasks that involves the analysis of many factors like general economic trends, comparative marketing etc. etc.
This is, among other similar tasks, what I do and considering what the shareholders pay me it seems I do it very well.
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So let me get this straight Companies use sophisticated models using marketing data, economic data, etc.. to figure out what price they should sell at (I totally agree - this is how it is done)! But next you are telling me that either they get it right most of the time, or only the succesful businesses get it right most of the time, or you are a genius and only you get it right most of the time.
I find any of them hard to believe since no matter how much data you look at there is still a huge margin for error. I read a report a few years back about how Weather forecasting is the most accurate of any type of forecasting and they only have about a 60% accuracy rating. I mean you know what you do is forecasting demand and price levels. Please tell me that you found a new way of doing it - where is your research to prove this amazing feat that no one else can accomplish? Please tell me??? Just because you get paid a lot for doing it does not mean you have a high chance of being right - all it means is that you have a higher chance of being right then if they didn't do any research. Second, Stock analysts who have a very low percentage of accuracy still get paid a lot. How do you explain that?