‘Discounts Are Not Always the Answer’ – How Discounting Ruins Your Business Profits?
For business owners, the single most important aspect is deciding their product/service pricing. “How much should I set the price for my services/products?” A lot of business owners include discounts on their offered products and services as a means to attract more customers and incur profitable sales. But these discounted aren’t always the answer to yielding more business profits. And more often than not they can ruin your business profits. Here’s a post which discusses how. So follow closely. It Hampers Your Business Profit Margin Considerably For every added discount, the sales will need to work harder. When you sell your products/services at its full price, your profit margin is also high. But when you sell it at a discounted rate, your profit margin decreases and more sales need to be made to compensate the lost revenue. In words of quality business accountants serving in Reading – If your profit margin is say 30% and the discount you offer is 10%, then you w