RestaurantWorx™

A reader asked me how much you need to sell to make up for insane (my word!) discounting?

If your regular gross profit is say 30% and you…

…give a discount of 5% you have to increase sales by 14% to generate the same gross profit
…give a discount of 10% you have to increase sales by 35% to generate the same gross profit.
…give a discount of 15% you have to increase sales by 70% to generate the same gross profit.
…give a discount of 20% you have to increase sales by 140% to generate the same gross profit.
…give a discount of 25% you have to increase sales by 350% to generate the same gross profit.

Doesn’t that give you a headache?

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