Sales are down, so we need to cut prices right? Not necessarily. The truth illustrated in the video below shows that price-cutting is almost never the way to grow profits.
The video shows that, at a 35% profit margin, a 10% price cut means you must increase sales by 40% just to stay even. Hard to believe? Take a look below. E-mail us if you’d like a free analysis of your own business pricing structure.
He is also a founding Board Member and Finance Director of the Fayette Pregnancy Resource Center and serves on the Board of the National Equal Rights Institute.
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