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Price increase table – what impact will rising prices have on your gross profit?

Sep 17, 2010   //   by paulgreen   //   Finance  //  2 Comments

If you adopt a premium pricing strategy, the following table shows the amount by which your sales would have to decline following a price increase before your gross profit is reduced below its present level.

For example, at the same 40% margin, a 10% increase in price could sustain a 20% reduction in sales volume without loss of profit.

Source: www.oxenham.uk.com

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