2006-08-18 03:48:54 · 4 answers · asked by indianmonk 2 in Business & Finance ➔ Small Business
Sales, I would rather increase market share than just profits. The profit increase will come as a result of increased sales. And increasing your market share will put you in a better position for the future.
2006-08-18 03:59:11 · answer #1 · answered by The Krieg 3 · 0⤊ 1⤋
I would go for higher profits, especially if you are a small business with limited resources to hire a battalion of sales representatives to sell your product.
Take for example a product that sells for $150 but where you earn $100 in profit per sale. If you only sell 10 items, your revenue is $1,500 but your profit is a hefty $1,000.
Compare that to a product that only sells for $10 and your profit per sale is $2. To achieve $1,000 in profit it means you have to sell 500 units. That's a lot of items to sell!
If you could have a product with good profitability margin that you can sell fast, then that's the best way to succeed in business.
2006-08-18 07:06:09 · answer #2 · answered by imisidro 7 · 0⤊ 0⤋
In the short term you might be looking at higher sales. Higher sales-same cost=higher profits. But as your company expands and costs rise, you will also need to cut back on costs of raw material and the COGS. Same sales-lower cost=higher profits. Therefore, short term measure, increase sales. Long term measure, increase sales and decrease costs.
2006-08-18 05:12:59 · answer #3 · answered by floozy_niki 6 · 0⤊ 0⤋
profit, because ppl only strive for more sale to get more profit in the first place.
2006-08-18 03:53:20 · answer #4 · answered by yofatcat1 6 · 0⤊ 0⤋