How to Make More Money from Your Products

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  1. You sell an Item A for $100.
  2. The item costs you $95.
  3. You get a $5 profit margin.

Now peep this:

  1. You sell Item B for $150.
  2. The item costs you $95.
  3. You get a $55 profit margin. 

That means the profits you earn selling:

  • 11 sales of Item A = 1 sale of Item B

"WHAT THE THAT IS CRAZY," you're thinking.

The higher your profit margins, the exponentially less ^ of customers you'll need to sell to earn X.

Focus on The Margins

How important are margins?

Take Item A in the previous example.

  • Increasing Item A's by $5 (i.e., $105) = you double your earnings.
  • You can sell 1 item instead of 2, and make the same $.

Or this:

  • Decreasing Item A's costs by $5 (i.e., $95) = you double your earnings.
  • You can sell 1 item instead of 2, and make the same $.

By improving your margins by even a little, your company starts earning more-and-more-and-%^@%^@%^@%^@-more.

It's why astronomical financial winners like Warren Buffett and Walmart are super-to-the-freak cheap.

Margins, margins, margins.

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Posted on November 02

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