What is the impact of 10 percent price cut on your Profits?

Recently, I have noticed a number of b2b sales people and sales managers at these companies cutting prices on their products and services. Interesting pricing strategy in view of the reality of what it takes to make up the cut in gross margins.

The usually justification for the these “innocent” price cuts is the recession has made it difficult to sell at higher prices or we need to cover our costs during this low volume period of time or the internet has made it harder to sell without cutting our prices.

Interesting justifications with no basis of reality provided with these “excuses” for a lack of selling skills.

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