Total Monetary Sales Essay Example | Topics and Well Written Essays - 250 words

Total Monetary Sales - Essay ExampleHowever, the higher prices adjudge resulted in sales dec debate in terms of volume therefore, the real sales have lessen as an outcome. In other words, the confederacy is losing its commercialise share. Using given information, it should be highlighted that the product line has relatively inelastic demand therefore, the increase in prices leads to less than proportional decrease in demand. Also, it should be argued that the net marketing contribution is stable because price hikes also raise companys sugar margin, which then enable the firm to assimilate losses from decrease in sales volume. Nevertheless, the firm has change magnitude products market price due to surge in costs of doing business and later the inflation. However, the cost structure and pricing strategy should be brought in-line because there is reasonable room to reduce market prices. For instance, it would be better to use competitive pricing strategy, after analyzing prices of substitute products, to tempt maximum customers towards companys market offerings. In this way, the rationalization of market prices will help enhancing sales volume and because the market share. This may probably lead to increase in marketing contribution if demand increases by more than proportional decrease in prices.