{"id":2612,"date":"2020-01-16T16:24:01","date_gmt":"2020-01-16T04:24:01","guid":{"rendered":"http:\/\/demo.bdsaccountants.co.nz\/?p=2612"},"modified":"2020-01-16T16:24:08","modified_gmt":"2020-01-16T04:24:08","slug":"should-you-be-discounting-your-price","status":"publish","type":"post","link":"https:\/\/www.bdsaccountants.co.nz\/resources\/should-you-be-discounting-your-price","title":{"rendered":"Should you be discounting your price?"},"content":{"rendered":"

The following table indicates the increase in sales that are required to compensate for a price discounting policy. For example, if your gross margin is 30% and you reduce price by 10% you need sales volume to increase by 50% to maintain your profit. Rarely has such a strategy worked in the past and it\u2019s unlikely that it will work in the future.<\/p>\n

If your present gross profit rate is:<\/strong><\/p>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n5%<\/strong><\/td>\n10%<\/strong><\/td>\n15%<\/strong><\/td>\n20%<\/strong><\/td>\n25%<\/strong><\/td>\n30%<\/strong><\/td>\n35%<\/strong><\/td>\n40%<\/strong><\/td>\n45%<\/strong><\/td>\n50%<\/strong><\/td>\n55%<\/strong><\/td>\n60%<\/strong><\/td>\n<\/tr>\n
And you reduce your price by:<\/strong><\/td>\nTo produce the same profit your sales must increase by:<\/td>\n<\/tr>\n
\u00a02%<\/strong><\/td>\n67%<\/td>\n25%<\/td>\n15%<\/td>\n11%<\/td>\n9%<\/td>\n7%<\/td>\n6%<\/td>\n5%<\/td>\n5%<\/td>\n4%<\/td>\n4%<\/td>\n3%<\/td>\n<\/tr>\n
\u00a04%<\/strong><\/td>\n400%<\/td>\n67%<\/td>\n36%<\/td>\n25%<\/td>\n19%<\/td>\n15%<\/td>\n13%<\/td>\n11%<\/td>\n10%<\/td>\n9%<\/td>\n8%<\/td>\n7%<\/td>\n<\/tr>\n
\u00a06%<\/strong><\/td>\n<\/td>\n150%<\/td>\n67%<\/td>\n43%<\/td>\n32%<\/td>\n25%<\/td>\n21%<\/td>\n18%<\/td>\n15%<\/td>\n14%<\/td>\n12%<\/td>\n11%<\/td>\n<\/tr>\n
\u00a08%<\/strong><\/td>\n<\/td>\n400%<\/td>\n114%<\/td>\n67%<\/td>\n47%<\/td>\n36%<\/td>\n30%<\/td>\n25%<\/td>\n22%<\/td>\n19%<\/td>\n17%<\/td>\n15%<\/td>\n<\/tr>\n
10%<\/strong><\/td>\n<\/td>\n<\/td>\n200%<\/td>\n100%<\/td>\n67%<\/td>\n50%<\/td>\n40%<\/td>\n33%<\/td>\n29%<\/td>\n25%<\/td>\n22%<\/td>\n20%<\/td>\n<\/tr>\n
12%<\/strong><\/td>\n<\/td>\n<\/td>\n400%<\/td>\n150%<\/td>\n92%<\/td>\n67%<\/td>\n52%<\/td>\n43%<\/td>\n36%<\/td>\n32%<\/td>\n28%<\/td>\n25%<\/td>\n<\/tr>\n
14%<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n233%<\/td>\n127%<\/td>\n88%<\/td>\n67%<\/td>\n54%<\/td>\n45%<\/td>\n39%<\/td>\n34%<\/td>\n30%<\/td>\n<\/tr>\n
16%<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n400%<\/td>\n178%<\/td>\n114%<\/td>\n84%<\/td>\n67%<\/td>\n55%<\/td>\n47%<\/td>\n41%<\/td>\n36%<\/td>\n<\/tr>\n
18%<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n900%<\/td>\n257%<\/td>\n150%<\/td>\n106%<\/td>\n82%<\/td>\n67%<\/td>\n56%<\/td>\n49%<\/td>\n43%<\/td>\n<\/tr>\n
20%<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n400%<\/td>\n200%<\/td>\n133%<\/td>\n100%<\/td>\n80%<\/td>\n67%<\/td>\n57%<\/td>\n50%<\/td>\n<\/tr>\n
25%<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n500%<\/td>\n250%<\/td>\n167%<\/td>\n125%<\/td>\n100%<\/td>\n83%<\/td>\n71%<\/td>\n<\/tr>\n
30%<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n600%<\/td>\n300%<\/td>\n200%<\/td>\n150%<\/td>\n120%<\/td>\n100%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The following table indicates the increase in sales that are required to compensate for a price discounting policy. For example, if your gross margin is 30% and you reduce price by 10% you need sales volume to increase by 50% to maintain your profit. Rarely has such a strategy worked in the past and it\u2019s …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[75,135,74],"tags":[],"yst_prominent_words":[],"yoast_head":"\nShould you be discounting your price? - BDS Chartered Accountants<\/title>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/demo.bdsaccountants.co.nz\/resources\/should-you-be-discounting-your-price\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Should you be discounting your price? - BDS Chartered Accountants\" \/>\n<meta property=\"og:description\" content=\"The following table indicates the increase in sales that are required to compensate for a price discounting policy. For example, if your gross margin is 30% and you reduce price by 10% you need sales volume to increase by 50% to maintain your profit. Rarely has such a strategy worked in the past and it\u2019s …\" \/>\n<meta property=\"og:url\" content=\"http:\/\/demo.bdsaccountants.co.nz\/resources\/should-you-be-discounting-your-price\" \/>\n<meta property=\"og:site_name\" content=\"BDS Chartered Accountants\" \/>\n<meta property=\"article:published_time\" content=\"2020-01-16T04:24:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-01-16T04:24:08+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.bdsaccountants.co.nz\/#website\",\"url\":\"https:\/\/www.bdsaccountants.co.nz\/\",\"name\":\"Buzarco\",\"description\":\"The Key To Unlocking Your Potential\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/www.bdsaccountants.co.nz\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"http:\/\/demo.bdsaccountants.co.nz\/resources\/should-you-be-discounting-your-price#webpage\",\"url\":\"http:\/\/demo.bdsaccountants.co.nz\/resources\/should-you-be-discounting-your-price\",\"name\":\"Should you be discounting your price? - BDS Chartered Accountants\",\"isPartOf\":{\"@id\":\"https:\/\/www.bdsaccountants.co.nz\/#website\"},\"datePublished\":\"2020-01-16T04:24:01+00:00\",\"dateModified\":\"2020-01-16T04:24:08+00:00\",\"author\":{\"@id\":\"https:\/\/www.bdsaccountants.co.nz\/#\/schema\/person\/1bd0b0b0493ee1ab43cf221086d8c1e3\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"http:\/\/demo.bdsaccountants.co.nz\/resources\/should-you-be-discounting-your-price\"]}]},{\"@type\":[\"Person\"],\"@id\":\"https:\/\/www.bdsaccountants.co.nz\/#\/schema\/person\/1bd0b0b0493ee1ab43cf221086d8c1e3\",\"name\":\"admin\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","_links":{"self":[{"href":"https:\/\/www.bdsaccountants.co.nz\/wp-json\/wp\/v2\/posts\/2612"}],"collection":[{"href":"https:\/\/www.bdsaccountants.co.nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bdsaccountants.co.nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bdsaccountants.co.nz\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bdsaccountants.co.nz\/wp-json\/wp\/v2\/comments?post=2612"}],"version-history":[{"count":3,"href":"https:\/\/www.bdsaccountants.co.nz\/wp-json\/wp\/v2\/posts\/2612\/revisions"}],"predecessor-version":[{"id":2615,"href":"https:\/\/www.bdsaccountants.co.nz\/wp-json\/wp\/v2\/posts\/2612\/revisions\/2615"}],"wp:attachment":[{"href":"https:\/\/www.bdsaccountants.co.nz\/wp-json\/wp\/v2\/media?parent=2612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bdsaccountants.co.nz\/wp-json\/wp\/v2\/categories?post=2612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bdsaccountants.co.nz\/wp-json\/wp\/v2\/tags?post=2612"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.bdsaccountants.co.nz\/wp-json\/wp\/v2\/yst_prominent_words?post=2612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}