Discount Example:
If you have a 30% profit margin and are thinking of offering a 10% discount, you need your volume of sales to increase by 50% to maintain your current level of profit (ie what you are doing now without a price discount)
Price Increase Example:
If you have a 30% profit margin and are thinking of increasing your price by 10%, you will require 25% less sales volume to meet your current profit margin (ie what you are doing now without a price increase)
Template: Discount Margin Table. © 2016 Sonia Friedrich.
Permissions: Adapted and reproduced with permission – Rick Payne. Chairman Principa Group of Companies.
