December 12, 2022
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The effects of cutting prices – do you realise how much more you need to sell to achieve the same level of profit?
It is very easy to reduce prices, but in doing so, this will affect your gross profit margin.
Yes, it might be that you actually increase unit sales, but will this increase your bottom-line profit, or will you make less money? How much harder might you have to work to sell more?
See the image below which illustrate the point with a simple example where 10% discount is applied across the board.
If you would like a more detailed discussion and review with your own figures, contact us today to arrange a meeting.
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