September 04, 2019

Remember Our Definition?

If an item were available for two months and was sold for $100 in the first month and $50 in the second month, then the month where the item was sold for $100 represents an "Above Average Price" and the month where the item was sold for $50 represents a "Below Average Price".

Here we see a business that is healthy. Items above their average are selling better and better as time progresses. Items below their average selling price are generating less volume.

Does this matter?

Absolutely!

You can train customers to pay more, and you can train customers to pay less. Patience with great merchandise coupled with appropriate pricing discipline results in trained customers.

Next, I'll show you what happens when you train customers to buy items that are selling below their average selling price.

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