why would some comptant rater sell a huge amount of product for cheap rater than the same amount at normal price ?

Question

why would some comptant rater sell a huge amount of product for cheap rater than the same amount at normal price ?

In: 0

Answer 1

Because the asset on hand is not capital.

Selling at a lower price can result in the product being sold faster. Whereas selling it at a normal price could result in a much slower turnover.

And for most people/business, having a physical product usually have other cost associated, such as storage and opportunity cost.

Answer 2

Because their goal is to maximize total profit. Total profit is gross margin * sales – overhead. Sometimes a low margin, high volume business model ends up making more profit than a high margin, low volume one