Wednesday, September 16, 2015 5:34:22 PM
One can cut costs just so much. At what point do you hurt production quality, product development, customer acquisition and retention? FD has been aggressively cutting costs for more than two years. They have made substantial progress. But like everything else, there are diminishing returns in cost cutting. And cost cutting has nothing to do with growth.
The key to success is customer acquisition. Volume, not price, is the critical factor. Price is very hard to increase. Maybe you have noticed that the company runs sales at times. Price cutting can be an effective marketing tool. Unless, of course, one has to cut prices with great frequency to maintain volume or cash flows.
If the answer you are getting is more cost cutting, then maybe you need to press a little harder for answers.
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