And don't forget, you have to spend capital to stock up on products! When profit margins get thinner, you will struggle to cover all these costs. In the long run, your cash flow will be completely torn apart. If cash flow is disrupted, it is difficult to run a business because you don't have the money to roll it out. Not only are operations affected, but when it comes to making other business decisions, you are limited because you don't have enough capital.
And remember, a business that constantly plays with prices may seem to bahrain phone number resource get a lot of sales, but it doesn't make any profit . You have to sell more products to achieve the same profit target. By working harder but getting little profit, you can eventually burn out yourself! So, instead of falling into this price trap, it's better to focus on the quality of the product and the added value you can provide to your customers. This way, your profit margin will be safer, and your cash flow will also be maintained steady! #3. Brand Value Menurun When you're busy playing with prices, one thing you might not notice is that your brand value will drop significantly.
People will start to think, "Eh, this brand keeps lowering prices. Are they selling because they want to run out of stock, or is this product not selling?" You have to understand that brand value is actually more than just how much you sell your goods for. Brand value involves customer perception of your brand. If you charge insanely low prices, customers will start to feel that your brand has no special value. Like, instead of being exclusive or premium , your brand will look like a brand that's just desperate to make a sale.
All those things don't go down in price like you go down in product prices
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