Conversation
Lorenzo Stoakes
ljs
One of my pet peeves:
'This is an $X billion industry'
Firstly, it's always an estimate. Second, it's gross sales, it's always gross sales, which has zero to do with profit.
Something with a margin of 0.001% might have a $20bn industry but it's hardly lucrative to join in.
Not to mention that the thing might have huge barriers to entry, competitive might be incredibly robust, etc. etc.
It basically tells you NOTHING about an industry and is 'hur hur here is a big number hur hur'.
But people are people and fall for it
'This is an $X billion industry'
Firstly, it's always an estimate. Second, it's gross sales, it's always gross sales, which has zero to do with profit.
Something with a margin of 0.001% might have a $20bn industry but it's hardly lucrative to join in.
Not to mention that the thing might have huge barriers to entry, competitive might be incredibly robust, etc. etc.
It basically tells you NOTHING about an industry and is 'hur hur here is a big number hur hur'.
But people are people and fall for it
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(this was inspired by https://www.youtube.com/watch?v=_Mxyon4q1MU - new Marshall boss claiming the guitar amp industry is a '$100bn industry', nah fam)
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