businessworkscas provides comprehensive financial and advisory solutions for all business purposes. They are the best option for owner-managed businesses devoid of Chief Financial Officer. I can’t tell you how many business owners feel the urge to compete on price in their business rather than on the value their products and/or services bring to their customers. As a finance guy, this worries me because I understand the significant negative impact that price discounting can have on growth.I sat with a client once in an interview for a new sales person. The candidate actually said, “The first thing I will do is offer 10% reductions in price to new customers.” Wow! I could not believe my ears. I discussed this in an earlier post, but let’s look at the math again. If, for example, your business operates at a 30% gross margin level and you reduce prices by 10%, your volume must increase by 50% just to achieve the same profit levels! And I would say that for most business owners, where growth and profit are key areas of focus, this is huge.
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