The promo that was supposed to be special ended up not being special at all!
Posted: Sat Jan 18, 2025 5:54 am
But if your profit margin is thin , you don't have room to make attractive promotions. You made a mistake, you did a promo but lost because you had to absorb the costs yourself. Even worse, if the promo doesn't work and customers don't buy, you've wasted marketing money and effort for nothing. Also, if customers are used to low prices, they won't be very excited when you do a promo because your prices are already very low from the start. For them, there is no difference between the promo price and the regular price.
So, when you play with prices, you are actually killing the opportunity to bahrain phone number resource create promotions that can boost sales in a healthy way. The best promo is when you have enough margin , so that every time you give a discount, you still make a profit and the customer is happy. But if the margins are thin, you will be stuck, unable to do anything other than accept the fact that you don't have room to provide more value to your customers.
#6. Business is difficult to grow You might think , "Okay, this can attract more customers." But, the problem is that you will find it difficult to grow your business ! Why is it so difficult? Because when you play with prices, your profit margin gets thinner. When the profit margin is small, the commission you want to give to your team, agents, or affiliates will be limited. Let's say you have a plan to hire agents or affiliates to help sell products, usually you will give them a commission as motivation. But, if your profit margin is small, how much commission do you want to give? If you give too little, your agents or affiliates won't be motivated to sell because it's not worth their effort.
So, when you play with prices, you are actually killing the opportunity to bahrain phone number resource create promotions that can boost sales in a healthy way. The best promo is when you have enough margin , so that every time you give a discount, you still make a profit and the customer is happy. But if the margins are thin, you will be stuck, unable to do anything other than accept the fact that you don't have room to provide more value to your customers.
#6. Business is difficult to grow You might think , "Okay, this can attract more customers." But, the problem is that you will find it difficult to grow your business ! Why is it so difficult? Because when you play with prices, your profit margin gets thinner. When the profit margin is small, the commission you want to give to your team, agents, or affiliates will be limited. Let's say you have a plan to hire agents or affiliates to help sell products, usually you will give them a commission as motivation. But, if your profit margin is small, how much commission do you want to give? If you give too little, your agents or affiliates won't be motivated to sell because it's not worth their effort.