Does your customer decide by thought?

Let’s find out together, step by step.

Let’s say you have a cow. You sell its milk and earn money. After some time, milk prices drop so much that you start to lose with the current feed prices, and it also seems that prices will not increase in the coming period. Would you slaughter the animal and sell it as meat?

Before making the decision, you immediately calculate with your mind: “I get X liters of milk from the animal per day. Multiply by 30 to see it per month. Multiply by 365 per year. Great! Milk price times annual milk production is also my annual endorsement. What are my expenses? How much feed does the animal eat per day? Multiply it with 365.” Facility costs, human costs, milking machines, sustainability costs… With the rough calculation here, a profit or a loss emerges. If there is a loss, you either sell the milk for higher prices or reduce the costs. The price is determined as a competitive one in the market.

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