Expand Profits Through Lower Prices
Posted by Goody on 06/25/08 in Business
Sometimes lower prices can deliver higher profits. This article explains what to look for to identify such an opportunity.
Anytime you break even on an offering, you can’t afford to charge less. But where you do make a profit, reducing your profit per unit may be useful to increasing your overall profits. What are the situations you should look at for?
First, you need to think about situations in which having customers buy more of your products and services would cost you very little. In doing this evaluation, be sure to consider what your actual costs would be rather than just what your standard costs tell you they would be on average.
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