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PRICES CHART

The following chart gives you an idea of the effect on your profitability by showing the quantity your sales would need to increase or decrease if you reduced or increased your prices. You can use this table as a guide to your pricing policy but please discuss any actions with us before implementing them.

If your present gross profit percentage is:

 

20%

25%

30%

35%

40%

45%

50%

55%

60%

And your  prices fall
by

To increase your profit, your sales volume must increase by more than..

2%

11%

9%

7%

6%

5%

5%

4%

4%

3%

4%

25%

19%

15%

13%

11%

10%

9%

8%

7%

6%

43%

32%

25%

21%

18%

15%

14%

12%

11%

8%

67%

47%

36%

30%

25%

22%

19%

17%

15%

10%

100%

67%

50%

40%

33%

29%

25%

22%

20%

12%

150%

92%

67%

52%

43%

36%

32%

28%

25%

14%

233%

127%

88%

67%

54%

45%

39%

34%

30%

16%

400%

178%

114%

84%

67%

55%

47%

41%

36%

18%

900%

257%

150%

106%

82%

67%

56%

49%

43%

20%

-

400%

200%

133%

100%

80%

67%

57%

50%

25%

-

-

500%

250%

167%

125%

100%

83%

71%

 

 If your present gross profit percentage is:

 

20%

25%

30%

35%

40%

45%

50%

55%

60%

And your
 prices rise
by

To increase your profit, your sales volume must not reduce by more than..

2%

9%

7%

6%

5%

5%

4%

4%

4%

3%

4%

17%

14%

12%

10%

9%

8%

7%

7%

6%

6%

23%

19%

17%

15%

13%

12%

11%

10%

9%

8%

29%

24%

21%

19%

17%

15%

14%

13%

12%

10%

33%

19%

25%

22%

20%

18%

17%

15%

14%

12%

38%

32%

29%

26%

23%

21%

19%

18%

17%

14%

41%

36%

32%

29%

26%

24%

22%

20%

19%

16%

44%

39%

35%

31%

29%

26%

24%

23%

21%

18%

47%

42%

38%

34%

31%

29%

26%

25%

23%

20%

50%

44%

40%

36%

33%

31%

29%

27%

25%

25%

56%

50%

45%

42%

38%

36%

33%

31%

29%