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Adding Product Lines to Your Business

Consider your gross profit margin, the pulse of your business.

Regardless of the product lines you want to bring on to expand your offerings, you have to take a good hard look at what is the profit margin for that line of products. If you’re going to add products to your mix, then you’ll want to consider the going rate of profitability for that new product line. Think about your gross profit margin. The gross profit margin is similar to your pulse – keep a finger on your pulse to know what direction your business is heading. Will the new product line dilute your gross profit margin or enhance it? Prices may need to be raised in order to maintain your gross profit margin if it’s going up. It could go up if the demand for the product is greater.

-Vince DiCecco, Your Personal Business Trainer

Read more about Inviting New Products into the Mix.

vince dicecco

Vince DiCecco

Your Personal Business Trainer

Vince is a dynamic seminar speaker and author with a unique perspective on business development and management subjects, primarily in the decorated- and promotional-apparel industries. With 20+ years of experience in sales, marketing and training, he is an independent consultant to businesses looking to profit and sharpen their competitive edge.

View all articles by Vince DiCecco   Visit Website

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