Question:
Why do customers who play the most important part in the growth of the company dont get share of profits.?
sarabhus
2006-07-22 03:38:03 UTC
For any new company finding new customers is always tough and similarly for any customer buying goods of a new company is a tough call. But when a customer puts in the trust in the companies product and the company starts growing, the customer is forgotten and no company in the world shares the portion of the sales with old customers. Why?
Three answers:
FRAGINAL, JTM
2006-07-22 03:42:48 UTC
Customers are not part of the company. Thus, no profits goes to the customers except when it gives rewards to loyal customers just like airlines that gives free tickets to passengers who always take their flights.
scott.braden
2006-07-22 18:01:35 UTC
You've made an incorrect assumption.



1) Many companies are partially or wholly funded by investments from customers, at startup. This could be straight-out loans, equity, or contingent financing such as guaranteed purchase orders or contracts, so that the startup can get funding elsewhere. Obviously, these customers benefit when the startup succeeds.



2) Even if there is no ownership position, customers benefit in the traditional way - that if they didnt' benefit from the deal, they would take their business somewhere else. So, the customer does "share" in profits, but not as a stockholder - instead they get the benefit of lower costs, better productivity, etc. If they bought from the next-best supplier, some of that gain would be lost.
EC2talk2
2006-07-22 15:34:23 UTC
What if you own your own company...are you willing to share your profit with your customers..??? are your CUSTOMERS directly involved in your company...?? Are you a good customer...from X company....you can give to your customers price discounts, good service but never your MONEY, unless you are a very, very, very nice person and provide your products or services for free...or at least at cost...this way you will NEVER make money for your self or your partners/share holders


This content was originally posted on Y! Answers, a Q&A website that shut down in 2021.
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