Building Something New
Casey Anderson
Economics
Mr. Rueter
9/29/14
Whenever there is a new product in the market there has been a huge risk taken by the producer who invested possibly thousands of dollars in which they could get nothing in return. The economy is set up for people to greatly succeed or fail in the products they sell with many products out there in the world many people have never heard of. However these products still exist because they do have a market no matter how small the clientele is they must be making some sort of money or else they would not exist. Thus the market could go really well for anybody or just completely screw them over.
There are thousands of small products out there that are pretty much invisible to us but still bring in millions of dollars a year because the product works well and is scarce to a certain number of people. Like the scrub daddy, shown below, which appeared on the TV show Shark Tank could have been a bad decision but instead he got an investor and made the product happen into a good thing, from making 100,000 dollars, to upwards of 4 million in annual revenue(He’s). Thats quite a bit of money and many people probably never have heard of this sponge that changes its hardness according to water temperature. There are many things that could have gone wrong with his product and he invested thousands of dollars and it happened to pay out for him. Even though the market for such a product is not good he made it work by advertising properly and got into the right place to sell his product.
Then there are the products that we do know about but are doing poorly such as segways. Pretty much everyone has heard about what a segway is, but does not know how poorly the company actually did in profits. According to http://blogs.wsj.com/, “The Wall Street Journal reports that the original funds raised by Segway are gone and Mr. Kamen had to raise a new $31 million and mortgage its factory because the company was losing money”(From). This shows how segway a company that many know can have a hard time when others can have a relatively easy time making money that is not well known. Recently the company has come under new management and is currently doing a better job in advertising thus sales have increases as you can see from the chart below.
Thus the market that the US uses praises good ideas and people who know how to advertise them to a right group of people. This can be very important in how the flow of money can go around from the businesses to the workers. If the company doesn’t make money then it has to let go of workers and there is less money flowing through the economy.
"From Hype to Disaster: Segway’s Timeline." Digits RSS. N.p., n.d. Web. 30 Sept. 2014.
<http://blogs.wsj.com/digits/2010/09/27/fromhypetodisastersegwaystimeline/>.
"He's the daddy of the Scrub Daddy."Philly.com. N.p., 16 Oct. 2011. Web. 30 Sept. 2014.
<http://articles.philly.com/20111016/business/30286442_1_aaronkrausebobblehea
ddollgrillcleaning>.
"Scrub Daddy." Zujava.com. N.p., n.d. Web. 30 Sept. 2014.
<http://www.zujava.com/scrubdaddy>.
"Super Segway." Rekvizitai.lt Lithuania. N.p., n.d. Web. 30 Sept. 2014.
<http://rekvizitai.vz.lt/en/company/super_segway/turnover/
Economics
Mr. Rueter
9/29/14
Building Something New
Whenever there is a new product in the market there has been a huge risk taken by the producer who invested possibly thousands of dollars in which they could get nothing in return. The economy is set up for people to greatly succeed or fail in the products they sell with many products out there in the world many people have never heard of. However these products still exist because they do have a market no matter how small the clientele is they must be making some sort of money or else they would not exist. Thus the market could go really well for anybody or just completely screw them over.
There are thousands of small products out there that are pretty much invisible to us but still bring in millions of dollars a year because the product works well and is scarce to a certain number of people. Like the scrub daddy, shown below, which appeared on the TV show Shark Tank could have been a bad decision but instead he got an investor and made the product happen into a good thing, from making 100,000 dollars, to upwards of 4 million in annual revenue(He’s). Thats quite a bit of money and many people probably never have heard of this sponge that changes its hardness according to water temperature. There are many things that could have gone wrong with his product and he invested thousands of dollars and it happened to pay out for him. Even though the market for such a product is not good he made it work by advertising properly and got into the right place to sell his product.
Then there are the products that we do know about but are doing poorly such as segways. Pretty much everyone has heard about what a segway is, but does not know how poorly the company actually did in profits. According to http://blogs.wsj.com/, “The Wall Street Journal reports that the original funds raised by Segway are gone and Mr. Kamen had to raise a new $31 million and mortgage its factory because the company was losing money”(From). This shows how segway a company that many know can have a hard time when others can have a relatively easy time making money that is not well known. Recently the company has come under new management and is currently doing a better job in advertising thus sales have increases as you can see from the chart below.
Thus the market that the US uses praises good ideas and people who know how to advertise them to a right group of people. This can be very important in how the flow of money can go around from the businesses to the workers. If the company doesn’t make money then it has to let go of workers and there is less money flowing through the economy.
Bibliography
"From Hype to Disaster: Segway’s Timeline." Digits RSS. N.p., n.d. Web. 30 Sept. 2014.
<http://blogs.wsj.com/digits/2010/09/27/fromhypetodisastersegwaystimeline/>.
"He's the daddy of the Scrub Daddy."Philly.com. N.p., 16 Oct. 2011. Web. 30 Sept. 2014.
<http://articles.philly.com/20111016/business/30286442_1_aaronkrausebobblehea
ddollgrillcleaning>.
"Scrub Daddy." Zujava.com. N.p., n.d. Web. 30 Sept. 2014.
<http://www.zujava.com/scrubdaddy>.
"Super Segway." Rekvizitai.lt Lithuania. N.p., n.d. Web. 30 Sept. 2014.
<http://rekvizitai.vz.lt/en/company/super_segway/turnover/
0 Response to "Building Something New"
Post a Comment