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?
To illustrate the point with a simple example where 10% discount is applied across the board:-
On the plus side- if you were to increase prices, you would not need to sell as much to achieve the same profit as you
are making now.
If you would like a more detailed discussion and review with your own figures get in touch with us, we are here to help!
