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Tuesday, January 12, 2010

How to Increase Profit Margins Step 2!

I will only say this once!! DO NOT COMPROMISE ON PRICE!

When distributors lack confidence in their products they immediately lower the price, which ultimately effects their bottom line. This comes out of fear of loosing the sale. Everyone figures that some money is better than none. Especially in this economy we have to keep every sale that we have in our hands. But truthfully maybe the sale should be lost if the profit margins cannot be maintained. The problem is when the owner has the mind of a salesman, you need to keep your businessman hat on and not put on your sales hat. It takes time to realize that the bottom line is more important then the top line.

1 comment:

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