Читать книгу Pricing Strategies for Small Business - Andrew Gregson - Страница 22

Table 2 shows that driving sales volume is not as powerful a path to profit as increasing prices or reducing variable costs.

However, not all hamster cages are created equal. There was a business model in Vancouver, British Columbia, whereby all the products sold at rock bottom prices. The markup from landed cost (invoice cost plus shipping and handling, duty and all other costs attached to get the product onto shelves) covered the overhead and staffing.

The company profit component entered the picture only when staff hit very high sales targets that triggered a sales bonus from the manufacturer. The management had focused their time on negotiating these large bonuses and on driving the large volumes. While from the outside it looked like the business merely spun its wheels, in fact the owners had found a unique path to profit.