A profit of 23% is a sign of good quality for a company by Nada 20230920

I think it is good for companies to aim for a profit margin of 23% or higher. In fact, if you rewrite the formula sales - expenses = profit as follows: expenses + profits = sales, you will find that higher profits reduce costs. The price index is a very exciting number, and if it is 30% off or 50% off, it will be easy to attract customers' attention. Prices have a strong incentive, just as half-price lunch boxes bring savings to some people. If there was a way to set prices better, it would be an invention. The above formula of price = average cost also works well in an excess demand economy called Say's law. However, in markets where there is unsold stock or inventory, or where profits are not zero, by adding an inventory term and a profit term to the formula (Price x Sales Quantity = Production Volume x Average Cost), it is possible to confirm the situation more realistically using the formula. become. By setting such a price formula and applying it to various products, more rational pricing becomes possible. I would like to think carefully about whether it is reasonable to set prices at 30% or 50% if the products do not sell as well as they are priced at supermarkets. Whether it prospers or declines depends on the price. Isn't pricing the best place to show off your management skills?