How to Make More Money from Your Products
- You sell an Item A for $100.
- The item costs you $95.
- You get a $5 profit margin.
Now peep this:
- You sell Item B for $150.
- The item costs you $95.
- You get a $55 profit margin.
That means the profits you earn selling:
- 11 sales of Item A = 1 sale of Item B
"WHAT THE THAT IS CRAZY," you're thinking.
The higher your profit margins, the exponentially less ^ of customers you'll need to sell to earn X.
Focus on The Margins
How important are margins?
Take Item A in the previous example.
- Increasing Item A's by $5 (i.e., $105) = you double your earnings.
- You can sell 1 item instead of 2, and make the same $.
Or this:
- Decreasing Item A's costs by $5 (i.e., $95) = you double your earnings.
- You can sell 1 item instead of 2, and make the same $.
By improving your margins by even a little, your company starts earning more-and-more-and-%^@%^@%^@%^@-more.
It's why astronomical financial winners like Warren Buffett and Walmart are super-to-the-freak cheap.
Margins, margins, margins.
If you enjoyed How to Make More Money from Your Products, get a complimentary subscription to our freshest articles through email or through your feed reader.
Posted on November 02