You might want to print these off – or bookmark this page for future reference.
And make sure your sales people see this first chart before they give a discount!!
for example, if you are making 5% profit and you give a price discount of 3%, you’ve got to sell an extra 130% to make the same amount of profit. And will you? Probably not!
If you’re making 10% profit and you give away a discount of just 2% you have to sell an extra 25%….
This is about the reverse: putting your prices UP:
So if you’re making 5% and you put your prices up by 5% then clearly you can afford to lose 50% of your business and still make the same profit. And of course you won’t lose that much. So you should do it!
If you’re making 3% and you put your price up by 10% (let’s go crazy!) you can afford to lose 77% of your customers. Will 23% decide to stay with you and pay 10% more? That’s what you must decide…
… and if you are making 8% and you just increase your price by 3% you can afford to lose up to 29% and make more profit. Interesting!
PS – You can use THIS COUPON to get my udemy on-line Negotiation Skills course for only £10!