When I make a profit, how do I know if the profit I make is correct ???because I
ID: 435083 • Letter: W
Question
When I make a profit, how do I know if the profit I make is correct ???because I don’t know if I should charge more or much much more if needed for the CORRECT profit I should receive!!!That’s why some people make money but are always in the same position throughout their lives .... When I make a profit, how do I know if the profit I make is correct ???because I don’t know if I should charge more or much much more if needed for the CORRECT profit I should receive!!!
That’s why some people make money but are always in the same position throughout their lives ....
That’s why some people make money but are always in the same position throughout their lives ....
Explanation / Answer
In order o know whether the profit you are earning is correct or you should charge more to earn more, it is important to Price your products correctly with a proper pricing strategy which may depend upon key factors such as your target customer, how much competitors are charging, and understanding the relationship between quality and price. You should be clear that you should earn so much that you should be able not only cover your costs, but take a profit and perhaps expand your business. You should have a revenue target for how much of a profit you want your business to make. Then divide your revenue target by the number of units you expect to sell and you have the price at which you need to sell your product to achieve profit goals.
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