When it comes to being in business there probably has never been a better saying. What is important to any business is the bottom line and the bottom line is the profit. The top line is the turnover and turnover in £millions is of no use to the shareholders or the owners if the bottom line is negative or falls below that which is expected.
A business can effectively “buy” turnover with ultra low prices but it cannot do the same for profit, that has to be earned and whilst as a promotion low prices can be effective and have a place in the overall strategy a salesman’s delight at large sales figures is easily negated if the result is very low or non-existent profits.
Every businessman or woman has to learn the true value of a sale and must not let themselves become seduced by large sales figures they must learn to curb the sales team’s enthusiasm for a sale at any cost arguing that any sale is better than no sale because sometimes that simply is not true and if you are in a very small one man band operation and are tempted to reduce your price to “get a sale” just remember whilst you are working on a low profit sale you are possibly losing out on a more lucrative sale. Just remember “Turnover’s vanity Profit’s sanity.”