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 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