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  1. Senior Member
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      • South Korea
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    #1

    add on a percentage

    The following in red is confusing. Please paraphrase it more easily.

    This information gives you some important input into your strategy and a check on your cost structure, but it is only the very beginning of your pricing journey. Do not be tempted to take your costs and simply add on a percentage for profit. You will be leaving money on the table but, more importantly, you will be sending the wrong signals to your customers.

    Thank you.

  2. Key Member
    English Teacher
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    • Join Date: Jan 2010
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    #2

    Re: add on a percentage

    Quote Originally Posted by unpakwon View Post
    The following in red is confusing. Please paraphrase it more easily.

    This information gives you some important input into your strategy and a check on your cost structure, but it is only the very beginning of your pricing journey. Do not be tempted to take your costs and simply add on a percentage for profit. You will be leaving money on the table but, more importantly, you will be sending the wrong signals to your customers.

    Thank you.
    Say that you, as a business person, pays $1.00 for a book which you will resell. Do not merely add 50% to the cost of the book when you put a retail price on the book. The book may sell just as well if it is priced 100% higher than your costs. By being tempted to sell the book for a low price, by not adding on a higher price you are not getting all the money you could from a sale - this is called leaving money on the table.

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