When Does It Make Sense To Sell Customers Items At A Loss?
And When Does It Not?
Staples just lured me into the store to buy an 8 gig Hewlett Packard jump drive for 11 dollars. While there a clerk up sold me on buying two packs of Duracell Copper Top battery packs on the deal that I would get 100 percent of my money back in rewards credit coupons.
If they broke even on the 8 Gig jump drive, how does the battery sale make sense?
You may say this is the price of business on Black Friday. I ask, how careful are you being on getting adequate margins on the sales you are booking now for the next few quarters of business execution? Does you business model adequately think about liquidity, working capital and fiscal risk management?
Posted by FiscalDoctor com at 11/30/2010 5:47 AM 
Categories: creativity, sales, customer service, business plan, budget, cash flow, business growth, customer, strategic plan, plan, Leadership, business model, profits, customer profitability, Accountability, economic choices, Business Management
Tags: budget business growth business model business plan cash flow customer customer profitability customer service operations risk management risk strategy
Categories: creativity, sales, customer service, business plan, budget, cash flow, business growth, customer, strategic plan, plan, Leadership, business model, profits, customer profitability, Accountability, economic choices, Business Management
Tags: budget business growth business model business plan cash flow customer customer profitability customer service operations risk management risk strategy
Comments