The Math of Selling More for Less
#discounting
An item costs 80 cents. Price it at $1.20, and you sell a certain amount. Price it at $1.00, and you sell three times as many. The profit per item is half, but you're selling three times the volume—so the overall profit is far greater.
This is the essence of discounting, the simple math that changed American retail: by cutting your price, you boost your sales to a point where you earn far more at the cheaper retail price than you would have by selling the item at the higher price. You lower your markup but earn more because of the increased volume. It's counterintuitive—making less per item to make more overall. But the numbers don't lie.
Sometimes the path to greater profit isn't charging more. It's selling more.