Results 1 to 2 of 2
    • Member Info
      • Native Language:
      • Korean
      • Home Country:
      • South Korea
      • Current Location:
      • South Korea

    • Join Date: Jun 2007
    • Posts: 1,271
    #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.

    • Member Info
      • Native Language:
      • English
      • Home Country:
      • United States
      • Current Location:
      • United States

    • Join Date: Jan 2010
    • Posts: 1,696
    #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.

Similar Threads

  1. pc = percentage?
    By NewHopeR in forum Ask a Teacher
    Replies: 1
    Last Post: 24-Jun-2012, 07:48
  2. Replies: 3
    Last Post: 06-Apr-2012, 10:04
  3. what verb do we use with percentage?
    By panosgr in forum Ask a Teacher
    Replies: 4
    Last Post: 07-Feb-2009, 02:54
  4. percentage?
    By sky753 in forum Ask a Teacher
    Replies: 2
    Last Post: 08-Jun-2008, 20:42
  5. Percentage
    By Anonymous in forum Ask a Teacher
    Replies: 2
    Last Post: 31-Jul-2004, 13:46

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •