The Australian Small Business Blog

Wednesday, November 07, 2012

Increase Your Margins with Discounts

by Dr Greg Chapman, MBA

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With the current economic climate, many businesses are struggling to maintain profit. It’s therefore tempting to discount prices to increase sales. Unfortunately this is a difficult path to profitability. For example, if you have a 30% margin, a 15% discount halves your gross profit, and you must double the number of sales you make just to achieve the same gross profit prior to discounting. While this is not impossible to do, with added marketing costs, it is not easy. More.....


Dr Greg Chapman is the Director of Empower Business Solutions and The Australian Business Coaching Club and is Australia's Leading Advisor on Emerging Businesses and provides Coaching and Consulting advice to Australian Small Business Owners in Marketing & Business Strategies Planning & Systems. He is also the author of The Five Pillars of Guaranteed Business Success and Price: How You Can Charge More Without Losing Sales.

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Dr. Greg Chapman is also the author of
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The Five Pillars of Guaranteed Business Success

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