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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
