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The 5 Myths of Mastering Profit Margins | Entrepreneur

2. Increasing margins can only be done by raising prices. As mentioned above, we can increase margins by reducing costs, but that should not be the only lever we try to pull. When we look to increase margins by reducing costs, we need to ensure that the quality of our products and services and our reputation stay intact.

3. You should compare your profit margins to your competitors. You should not. Your goal in every transaction should be to maximize your margin by pulling the different profit levers. You cannot compare margins with other organizations because you don’t know their pricing models or their cost structure.

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The 5 Myths of Mastering Profit Margins.

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