Consumer P&L is an analysis of the profit and loss from individual consumers/customers or a segment, for products & services they avail. This is extremely important, at least in the software business, because when you sell an additional CD or host another tenant, it does not affect your input cost, but it definitely adds to overheads such like the billing & support functions. So when undercutting prices and compromising on margins, one should note that these costs will continue to add up, even though infrastructure, RnD & production costs hold level. This is still possible if the business model & product packaging is well thought of – that is if you have something special for the super consumers.
I first bumped into this idea when reading Eddie Yoon’s article title Why Verizon’s iPhone Could Be Good for AT&T where he highlighted the need to focus on loyal, super consumers who make a considerable impact on your bottom line rather the divas & deal chasers.
Spam is unavoidable, but sometimes its interesting. One such mailer I bumped into was a site called mumbex.com that provides fake experience letters. I’m not linking because I don’t want to send traffic to something illegitimate, but I’m sure most of you will still take the pains to key it in & have a look. For such people I have embedded a tracker that will report your details to NASSCOM. For other obedient ones, here are some highlights from their website:
