A flower delivery business wants to raise their overall sales volume to increase profit. After analyzing their costs, they choose their most popular line of flower arrangements and run a promotion on those arrangements. How would this promotion lead to higher profits?
Answers
Question:
A flower delivery business wants to raise their overall sales volume to increase profit. After analyzing their costs, they choose their most popular line of flower arrangements and run a promotion on those arrangements. How would this promotion lead to higher profits?
1. By lowering the cost of the flower arrangements to increase margin.
2. By raising the revenue to increase demand.
3. By lowering the price of the flower arrangements to increase demand.
4. By raising the margin on the arrangements to increase revenue.
Answer:
3. By lowering the price of the flower arrangements to increase demand is the correct answer.
So, the requirement is to raise their overall sales volume to increase it. After analyzing , they put the popular line of flower arrangements and they ran promotions for them . They need to lower the price of flower arrangements so, it will lure customers to buy the flower arrangements and this will help their flower delivery business.
Apart from the above situation , in business if we to make place in market and attract customers price should be low and all things start just keep giving quality and price will be high automatically.