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4.2.4. Line Graph #4... 3-in-1 Composite
(Your Perfect Price™ is in here!)
This graph displays all three line graphs, Unit Sales vs. Price, Gross
Dollar Sales vs. Price, and Gross Profits vs. Price, together...
The x-axis is the same as before, dollars increasing from left to right. The y-axis
is shared by all three graphs and its absolute values are not important.
The three line graphs have been recalculated to fit as superimpositions on
this single graph. The curves are exact and they are accurate relative to
each other, but of course the absolute y-axis values have no relevance at all.
Depending on the y-axis, the shape of these two curves may look a bit flatter,
but that’s OK -- on this graph, it’s the relationships that matter.
Everything you need is here. For every single price point, you can see how
many units you will sell, gross sales, and gross profits. Simply pick the price
that maximizes your profits for your business/pricing model!
Planning to top price? You’re in luck. You have a great range of choices --
your profits stay fairly level from $165 all the way up to $300. All you have to do
is decide how many customers you want to weed out!
How aggressively do you want to penetrate the market?...
Order now -> http://myps.sitesell.com/
Make Your Price Sell!
8 6
At $90, you generate your single best gross profit. But you lose 2/3 of
your potential unit sales at that price point (see how unit sales at $90 = 33?). If
you cut your price from $90 to $55, you increase your unit sales to 56 while only
decreasing gross profits by one-sixth. Naturally, you have to also consider
overhead and other expenses to calculate your own net profit.