Profit/earnings – inflationary or deflationary (and the answer)

Profit/earnings – inflationary or deflationary (and the answer)

marketing-innovation

I was with a (very sharp) friend of mine today that is a partner in a successful Financial Advisory business and he has been working on an innovative strategy for a number of years to diversify his business.

He sees the effect of automation on business and that potentially in the future Australia will be in a deflationary environment – smart.

He gave me feedback about the Banking industry that are savaging their costs by reducing the payroll and, whilst the Unions may be up in arms over this both now and in the future, it’s a trend that’s not going away.

But what happens to earnings when production of goods and services becomes so cheap that money may not matter in the future – an interesting thought as some commentators are firmly of this opinion.

The answer for business is as its always been – Marketing and Innovation.  The business that Innovates for the benefit of their customers and MARKETS that innovation will win out. Ask yourself, where is your market and industry at the moment and where are you placed in that industry – do you need to innovate and market it?

 

phil@philolsen.com

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