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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∙ 12y agoif my price is 52.00 and I am told that I am 180 percent higher. How do I find the lower value
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
Selling price is somethng on which the profit depends so its Selling price - Product price = profit
let the cost price =X sell price=cost +profit selling price=x+profit
profit can be calculated from profit percentage and cost price.profit percentage=profit*100/cost price.profit=selling price-cost price
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.
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
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.
the higher the demand the higher the price.the lower the demand the lower the price.
most definitely higher.
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.
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
typically the higher the price the lower the consumption
Search Arbitrage is the profit realized from the price discrepancies in the value of search results to a query.
if my price is 52.00 and I am told that I am 180 percent higher. How do I find the lower value
Pros: Higher profit margin - Higher contribution - More revenue per unit sold Cons: Lower demand for price elastic products - Fewer sold - Less total revenue
If you charge more than people are willing to pay (also known as what the market will bear) then you will have no buyers of what you are trying to sell. The higher the price, the greater the profit, but the lower the price, the easier it is to sell the product. So you have to find the balance between those two factors.