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If your sales increase morethen that of negative impact of lowering the price of product then in this way you can increase your profit by lowering your sales price.
For example:
if you are selling 10 units of product at $10 each then you are earning $100 but if you conduct a marketing research and get a information that if you lower your price by $1 and u will be able to sell 15 units of your product then you will earn $135 and it is more then of your previous position in this way you can increase profit by lowering price.
But on other hand if you receive information in same marketing research that by lowering price by $1 you will increase sale by 1 unit then you definitely will not decrease price because in this way you will earn $99 which is still less then previous situation and you keep continue with price $10.
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How do you get percent from higher value to lower value?
if my price is 52.00 and I am told that I am 180 percent higher. How do I find the lower value
How do you calculate cost price when given sell price and profit percentage?
Cost Price = Selling Price - Profit Profit = Selling price * profit percentage Example: Selling Price = 10 Profit % = 50% Profit = 10*50/100 = 5 Cost price = 10 - 5 Cost Price = 5
If selling price is S and product price is P then what will be the profit?
Selling price is somethng on which the profit depends so its Selling price - Product price = profit
How do you calculate cost price if we know the selling price and profit?
let the cost price =X sell price=cost +profit selling price=x+profit
How do you calculate Selling Price if you know Cost price and Profit percentage?
profit can be calculated from profit percentage and cost price.profit percentage=profit*100/cost price.profit=selling price-cost price
How does price elasticity of demand affect a firm's pricing decisions?
The price elasticity of demand affects a firm's pricing decisions by determining the optimal profit margin. Price elasticity of demand describes the rate of change of demand in response to a change in price. The higher it is, the higher demand changes in respond to price; lower means very little change. For a good with low elasticity, it is easier to profit off marking-up the price because demand falls little in response to a price increase. For a high elasticity, prices should approach equilibrium because straying from equilibrium results in a higher change in demand than in price.
How can lowering price upsell the competitor?
By lowering the price you might be able to sell more of your good at a cheaper price with a higher profit while your competitor sells a lesser amount with a higher price and almost matching your profit
How does the selling of gold jewelry create a profit?
When a dealer purchases gold jewelry, it is purchased for a price much lower than it is sold for. When the dealer's purchase price is lower than the sale price, it becomes a profit.
How does supply and demand affect the price of a product?
the higher the demand the higher the price.the lower the demand the lower the price.
Is the price of petrol getting higher or lower?
most definitely higher.
How does price level influence consumption?
typically the higher the price the lower the consumption
Explain baumol's sales maximization theory.?
maximising sales and it is where AC=AR..this the point where the maximum amout of sales take place. The firm only makes a normal profit at this stage.
What are the relationships between Profit and Loss?
In business, when you earn more than what you spent, that surplus amount is called profit. On the other hand, when you sell at a rate lower than the amount you spent, you face a loss. Profit = Selling Price - Cost Price Loss = Cost Price - Selling Price
How do you get percent from higher value to lower value?
if my price is 52.00 and I am told that I am 180 percent higher. How do I find the lower value
What is the median sales price?
The price in the middle: half are higher and the other half are lower
What is search arbitrage?
Search Arbitrage is the profit realized from the price discrepancies in the value of search results to a query.
Why is it important to achieve a high gross margin?
The higher the gross margin the more profit you can make. Gross margin is the difference between cost and original sell price of a product. it is you the original conceived profit. Obviously the higher the gross margin the more profit possible. (That is as long as a customer will pay that price!!)
