Where you can, sell the one with the higher margin

If you can, sell the one with the higher margin.

As a general rule, if you have the choice, chase margin not volume.

Yes, this means you and your team need to know the margin on the items you sell.

And yes, there will always be some exceptions. Client or customer preferences, competitive pressures, existing relationships, market forces.

But the overriding point is this. Where you can, sell the one with the higher margin.

Margin is the term used for the profit on the sale of the item     .

If Item A cost you $70 and you sell it for $100, your margin is $30.

Or 30% (30/100 x 100)

But if Item B cost you $60, and you still sell it for $100, your margin is $40.

Or 40% (40/100 x 100)

Same selling price.

Heaps more margin.

Better.

In fact, you could even sell Item B at a ‘discount’ of $95 and still be in front.

Lots of options to play with.

And actually, that is the point.

By knowing the margin on each item you sell, you can set your prices accordingly.

You can then make special offers that hit the mark but don’t destroy your margin.

Understand the key numbers.

Explain them to your team.

Show them how to calculate them.

Don’t leave it to chance.

This is too important.

Particularly now.

Let me know if you need a hand.

Peter