January 8, 2008
Julya is correct in her comment. So we are making changes to the “if I lower my prices” calculator so that it will answer the question from two standpoints. The first will be making the comparison of the two retail prices and determining how many you have to sell to make the same gross sales dollars. The second calculation will compare the gross profit dollars resulting from the two prices and how many you have to sell at the lower price to create the same gross profit dollars.
Thanks to Julya for her help in making our website better!
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Posted by tomshay
January 8, 2008
We received this question recently:
In the Internet tip of the month section, you ask the question how many more will I need to sell to make the same gross profit if I lower the price. Unfortunately, your calculator tells me only how many I need to sell to make the same sales dollar not the same profit.
I used the following information for my calculation. Twenty items at $16 each with a cost of $4. This gives me a gross profit of $240. If I lower the price to $10, I would need to sell 40 of the item to make the same gross profit. The calculator tells me that I would need to sell 32 to make the same sales dollar amount. Of course, this is correct. It just doesn’t match what the article says unless I’m doing something wrong.
Have an amazing day!
Julya Myers
The Amazing Art Studio, Inc
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Posted by tomshay
