A simple example is, you sell a product for RM80
Posted: Sat Jan 18, 2025 5:54 am
Your net profit is only RM10 because you play with prices. If you want to give a commission of RM5 to the agent, only RM5 will be left for you. If you want to give more so that agents are more motivated, you will lose out. If you don't give enough commission, agents will be lazy to promote your products. In the end, the business did not grow . Apart from that, when your business grows, you usually have to deal with large distributors – perhaps to enter new markets or enter large retail stores.
These distributors usually want big margins because they want to make a bahrain phone number resource profit. If you don't have any room in terms of margin because of price manipulation, distributors won't be interested in collaborating either. They will look for other brands that can give more commission or margin. In conclusion , playing with prices seems like a good short-term strategy, but in the long run, it will hinder your business growth. If you want to expand your business further through agents, sales teams, or affiliates, you need to make sure the profit margin is comfortable enough to provide fair rewards.
The more motivation you can give them, the faster your business can grow! #7. Customer runs away This is a big risk you will face – your target market could run away to a competitor's brand! Okay, imagine this: you've been building a solid brand for a long time. Your target market is the group that is willing to pay more because they believe in the quality and value of your product. But when you start playing with cheap prices, these customers start to feel skeptical. People will think, “Hey, why is it suddenly so cheap? Is the quality of this product still the same?” Customer perception is everything.
These distributors usually want big margins because they want to make a bahrain phone number resource profit. If you don't have any room in terms of margin because of price manipulation, distributors won't be interested in collaborating either. They will look for other brands that can give more commission or margin. In conclusion , playing with prices seems like a good short-term strategy, but in the long run, it will hinder your business growth. If you want to expand your business further through agents, sales teams, or affiliates, you need to make sure the profit margin is comfortable enough to provide fair rewards.
The more motivation you can give them, the faster your business can grow! #7. Customer runs away This is a big risk you will face – your target market could run away to a competitor's brand! Okay, imagine this: you've been building a solid brand for a long time. Your target market is the group that is willing to pay more because they believe in the quality and value of your product. But when you start playing with cheap prices, these customers start to feel skeptical. People will think, “Hey, why is it suddenly so cheap? Is the quality of this product still the same?” Customer perception is everything.