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?
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