Profit is the combination of the sales and the profit in each transaction.
There are many companies who manifest the theory that sales volume is best achieved by advertising reduced prices (and reduced margins) in the products they sell. These companies are only successful if their marketing initiatives achieve critical mass.
If potential customers interact with us, it can be true that the "service" they receive increases the likelihood with which they will purchase from us and may also reduce the propensity of this same customer to drive down the price.
It is essential that we fill the blunt end of the sales funnel with opportunities to do business, but that we then devise processes and procedures to maximise the proportion of these opportunities that are converted into real business with happy and satisfied customers and that these same processes are ones which optimise the average profit per transaction.
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