March 20, 2022

Margin and Price

Always look out for the way you treat low priced items. Example:

  • Lowest Price Points = 41% Gross Margin.
  • Low Price Points = 54% Gross Margin.
  • Average Price Points = 58% Gross Margin.
  • High Price Points = 57% Gross Margin.
  • Highest Price Points = 53% Gross Margin.
A former VP of mine said "Units = Customers". Often, you'll have a lot of customers buying from low price points ... meaning you're making less profit on lower dollars, meaning, well, that's not very good, now is it?

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

When Winners Aren't Quite Winners

It's common to measure winners via total demand generated. It's an easy calculation. But it's also the wrong calculation. It'...