Kevin is asking about formula / equation to determine a ratio of "units of free give away" to obtain maximum profit. (Kevin, correct me if I am wrong here.)
There are going to be equations in books that would help define this point. (If we keep it simple, it sounds like a maximation problem from stats. )We will have to dig into some basic stats, marketing, and advertising books to come up with the right answer.
Instead of digging into books right now,
How about a fun exercise?
Can we, on this forum, come up with a basic formula ourselves?
I think so. Anyone else want to work together to come up with this formula???
If so, where do you suggest that we start?
If we do come up with our own formula, then I will pull out some old books, do some research, and tell you what I think the formula/ratio should be according to the books.
Who am I?
James Hendrick of the Small Business Development CenterWhat I do: I provide free guidance to Mississippi Inventors Why free?
We are funded by the Univ. of MS, SBA, and State of MSContact info? http://www.mssbdc.org
- 662 915 5001