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Profit is what's left over after you've paid all your expenses. The important thing to note is that profit is
"what's left over". In other words, profit is a residual. It is the consequence of what happens in and to your business.
If you're looking for ways to increase your profitability, you have to focus on the four profit determining factors:
price, volume, variable costs, and fixed costs.
If your gross margin is 30% and you reduce your price by 10%, you need sales volume to increase by 50% to maintain
your initial profit.
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