This is how fast profits from quick sales are harmful to your business
Tags: Profitability, Business Intelligence, Marketing Strategies, Marketing, Increase Sales

I do not know who invented this phrase “small profits and quick returns.” But who invented this phrase must be a consumer. It is the consumer who painted a good cake for those who do business with us.

Do you often encounter such a situation, obviously selling a bottle of beverage & a box of cigarettes you only earn a couple of cents. Customers are still deadly bargaining ‘it’s not cheap!’, with an angry mood. The customer turned his head and said ‘I don’t want to buy it and I will not buy it from your shop in the future and I will tell others not to buy it from you.” After being attentive to this to the customer, is it a bad feeling in your heart, there is an impulse to hit someone? Who made the customers feel like King & Queen?

Small profits but quick turnovers have harmed how many businesses?

The cheaper price you set the more you sell, the cheaper you set the more customers are willing to buy, the more they like to buy your business revenue increases. Many stores think this way, so they maliciously start the price war. For instance, you sell $10, I sell $9, you sell $8, I sell $7, you dare to sell $6, I will sell $5. Anyway, it’s always cheaper than what you sell. Not afraid of losing profits, having a loss will also do it like this. Just to make you leave this business and let more consumers buy my products. Look at who can get to the end. Often both of the results are lost no one really wins.

The price war has been popular for a long time, and low-priced products could also be popular for a while, but it is difficult to last for a long time and even led to the popularity of some fakes. Because, the cost of fakes is lower, cheaper and earning more money. Instead, it hurts themselves and defrauds the consumers. In the end, the business can’t go for so long and making it brand infamous. In fact, you didn’t earn much money and have lost your reputation. It’s really not worth it!

Do you think that cheap is your biggest killer? You can seize more customers, you can beat the high-priced business. The result after a half busy year the sales went up. But you did not earn any profits. This half-year you were busy with your customers. Looking back, the high-priced merchants are still selling well and the business is still very popular! You going to regret this now.

Small profits but quick turnover, in fact, it is chronic suicide! You give up the profit the landlord will not give up the rent. You give up the profit, the clerk has to eat. You give up the profit, the customer still wants it to be more cheaper. The more you sell, the more you lose. At the end of the year, the result is again you were busy for nothing.

There are often some idle customers who chat in your shop. They say to you: “I think you have to do business well, things must be sold at a cheaper price than other sellers. Only selling things cheaper than another seller will attract repeat customers. Business can get better and better.”

You are often instilled with the idea of small profits but quick turnover and therefore, the business was terrible at the time and naturally went to the price wars a road filled with thorns.

The idea of small profits but quick turnover is a joke in itself. Because businessmen want to do business better. To serve customers well you must survive yourself first.

The reason why those old customers always buy things in the same store is because they are loyal customers to the store due to cheap prices. But there are really few loyal customers. On the contrary, the increase in some new customers is also due to the increase in the effectiveness of some products sold in the store.

Small profit does not necessarily sell more. However, the small profits will disrupt the normal operation of the market and will intensify the intensification of contradictions among peers. Originally, the profits of retailers can’t be compared with other industries.