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EYE ON THE INDUSTRY
HOW TO FIGURE PRICE CUTS

Use this table to determine how many units you have to sell to get the same dollars.

Find the percentage of increase in unit sales you will need to equal the gross profit at regular price. Look in the column headed by your present gross profit.
 

Link to Price Cut table in pdf. file
 

Example: If your present gross margin is 20% and you cut your selling price 5%, locate 5% in the left hand column. Now follow across to the column headed 20%. You find you will need to sell 33.3% MORE units to earn the same gross profit as at the previous price.

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