This is not rocket science, but sales people need to be reminded of it all the time: discounts force you to make huge increases in sales.

If your margin is 20% and you discount just 10%, you must double your sales to make the same profit.

If your margin is 25% and you give a 20% discount you must sell four times as much.

It is amazing how many businesses ignore this simple math. Of course, sales people love giving discounts, but it puts tremendous pressure on your profitability.

We can send you a simple chart that shows how much damage discounts do to your margin.

We can also help you focus on selling in ways that retain or grow margin, without having to discount or compete. Contact us now.

 

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