On Sales Leverage

Many companies and shops are open for business everyday and do not have a leverage product in their product mix. For example, a shop may have 10 products yielding 10% each. Say you’re selling scarves at $5 each, yielding a net profit of $2; in a day, you will need to sell 50 pieces to make $100 in profit (maybe you even have to deal with 50 customers!) Instead, you could identify 1 product yielding $50 in profit per transaction (like a suit or leather jacket), so in a day, you need to sell 2 products to lock in $100 in profit. Compare this to dealing with 30 to 50 customers selling low leverage products. Many companies struggle because they do not have leverage products, or if they do have them, they fail to promote them well. Look around at your business or shop, identify those high value leverage products (high profit density items) and market them well. Happy Selling!

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