For business owners the most important decision when marketing their products or services is price.
Two companies A & B compared
Two identical companies selling the same product or service. One company prospered the other failed and became insolvent.
Both companies offered their product or service at the same price, but the salesmen from B company were allowed to discount by up to 25% if needed.
Company A did not discount and therefore had to offer a superior quality of customer service, (company B could not afford to do so).
In fact there is a rationale for increasing price by 25% (even though you may lose 23% of your customers) as there is less work and more profit.
Experiment with your cash flow planning and you will be surprised at how much your profitability will be improved!
If you have any queries about your companies cash flow planning, then please do not hesitate in contacting one of our Financial Planning Consultants, at Pareto Lawrence we offer both Financial and tax planning advice to corporate and private clients.