Let's suppose that company "x"

[MasudIbne756]

A company that implements this policy does not really grow because it is only compromising, an example can clarify the situation better:

which last year had a turnover of €600,000, wants to close this year at €1 million! The entrepreneur at the head of the company, in order to make a million, thinks of implementing the classic "Poltronesofà" technique, that is, applying a continuous discount.

So he starts to give a 30% discount to all his customers, this chinese overseas australia data will clearly mean that all people will buy more, will be very happy and willing to pay 70 what they previously paid 100. The company will sell a lot and will presumably reach a million.



The problem is that the entrepreneur with that million will then have very little left in his pocket, because the margins will have dropped and in reality he will not have truly created a business expansion but a loss.