Topic: A BEP close quickly vs a business with an annual BEP that has quality (Read 34 times)

BEP (Break Even Point) may be a benchmark for an entrepreneur to set up a business. Without BEP, an entrepreneur or investor will not dare to take risks in business, only losses.

I have a brother who has a coffee shop business and a flower garden for taking photos and a strawberry garden surrounding the coffee shop, all the buildings are made of wood with a simple concept. One day my brother said to me "Why did I build a coffee shop with a wooden building and garden in around it? And why do I only provide a roof for the coffee shop and a garden without a roof? Meanwhile I charge $1.5 for taking photos in the flower garden and $1.5 for picking strawberries?"

I just shut up and listened.

"That's a strategy, why do I only provide photo spots such as bicycles, swings, and several hand-shaped wooden decks in the middle of the park without building a hut in the middle? If I build a hut there, visitors will scramble and sit there for a long time and that will slow down the flow of money. That's why I didn't build a hut in the middle of the park, so that I could get lots of people in there at once, I don't care if people after entering, paying a ticket of $1.5, can take as good a photo as possible or not or pick strawberries there or not. Because the hot conditions and busy visitors will encourage curiosity and dissatisfaction because you don't get good photos because there are too many visitors. "This feeling of curiosity and dissatisfaction sometimes encourages someone to return to visit another day in the hope of a quiet place and getting good photos."

From here I started to think that what my brother said was out of the box.

Sometimes local and foreign tourists visit there 2 or 3 times for the sake of photos and strawberries.

He said that it would be better for me to always improvise regarding this matter, I would be better off using wooden building materials that I can renovate when the atmosphere becomes too boring for visitors. Wooden building materials are also relatively cheap when compared to permanent ones. To build one park he said he spent almost $1500 and within 2 days he was able to make BEP, the rest was profit.

By continuing to accept tourists to enter the gardens and strawberry gardens, he is able to generate fairly large profits, and compared to other tourist attractions with quality concepts and photo spots and other rides with visitor restrictions, the results will clearly be different. Maybe the BEP is from a luxurious place with better rides and photo spots, but there is a limitation that visitors have a low BEP value and it takes months/years for the BEP.

In my opinion, this kind of thinking pattern will rarely be realized by people who do not have long observation and experience.

So friends, do you think this business mindset is good? And do you think that a BEP that is able to close quickly can continue to survive against businesses with annual BEPs that have quality?