Onur Cobanli explains:
So, 1 dollar is equal to 100 cents, in case you did not know, I am not telling you that each unique dollar spend on design would bring 100 dollar in profits, because that would be a lie; my quote just sounds nicer this way, and the lie would be that because each dollar spend on design will most likely bring much more than 100 dollars, let me prove you. There is always a market price for a product, and given enough time all markets with reasonable demand will have perfect competition, which means that if the product costs 100 euro to manufacture, it will sell almost equal to 100 euros. Now, if you invest in 1 dollar to your product and it could help push perceived value of your new and improved product to 101 dollars, if you sell 100 of such product, you would get 100 dollars extra profit; and that is not 100 times more than what you had, it is infinite times more than what you have because initially market was in equilibrium and therefore you were producing the product for 100 and selling it for 100, and you just had enough money to sustain current operations of company, to pay salaries, make marketing etc, but now you have profit for the first time, you have gone from zero to something positive, whatever that positive number does not matter; thanks to mathematics, you have increased your profits infinitely. Your added profits will keep there until all competitors catch on to you, so they all also spend 1 dollar on their products and now again no one can make an excess profit. Invest in design constantly and keep a step of competitors and keep profitable.