"If a man has good corn or wood, or boards, or pigs, to sell, or can make better chairs or knives, crucibles or church organs, than anybody else, you will find a broad, hard-beaten road to his house, though it be in the woods."
Ralph Waldo Emerson (1803-1882)
That is the real quote. There is a similar one, attributed to Emerson, but probably not really said by him. It is just as descriptive, and says:
Build a better mouse trap and the world will beat a path to your door.
The mouse trap is the most oft-accepted patent request, with 4,400, more than any other product the US Patent Office has issued patents for. About 400 people still apply for a new mouse trap patent annually.
Any new mouse traps lately?
A new one was put on the market just Friday, March 16. It has sold a million units each day since.
Was it a new product? Not really. It is the third generation of a new product. The famous I-pad.
Does Apple need to have fabulous holiday sales to get its product out? Does it sell its products in discount stores? How about outlet malls? In roadside stop offs, selling them along with pecan logs? Is it sold anywhere in the woods?
No? Why not?
Because it is a product with a new idea, a new way of doing things. All of which it does very well.
It is a product in demand because it not only works, but also because it changes the way people USED to do things! It created a new paradigm!
It is truly a better mousetrap.
THIS IS FREE ENTERPRISE AT ITS BEST!
As such, people are truly beating a path to the doors of Apple locations, worldwide, to participate in what they consider to be a privilege to buy one. They will pay pretty much any price Apple decides to sell it for. Everyone wants to get into the act of owning Apple stock! Why? Because they see that more people will be buying the stock than selling it. They want to get in on the action.
When more people buy a stock than sell it, the stock price will go up. Always. And people will reap profits.
Along with Apple's profits.
Is Apple reaping windfall profits?
NO! Windfall profits are those earned when somebody or something has nothing to do with the idea, product development or product sales, yet reaps rewards. In this context these rewards can be called pure profit.
When gubment taxes and increases taxes and earns "rewards" on something toward which it has participated nothing, it is earning WINDFALL PROFITS.
You and I have to take a risk.
And when was the last time you beat down a door to buy a crucible?
Part 2 of this post will come out next week!