Claiming and retaining an optimal market share for your company is every bit as challenging as it is essential. It’s important to consistently generate new business, but doing so isn’t always self-explanatory. The quality of your product or service might be sufficient to keep current customers happy, but you might run into trouble with getting those customers on board in the first place. How can you attract interested prospects? What can you do to give your business a chance to prove itself to a new customer base? Well, one way to do so is known as sales maximization — the process of undermining profit to generate as much revenue as possible. Here, we’ll see what sales maximization is and what it looks like in both theory and practice. Theoretically, sales maximization is achieved when a business sells as much of a product or service as possible without making a loss, meaning the average revenue of a product or service is the same as its average cost to produce it. This is often achieved by strategically lowering prices. Here is a numerical example of sales maximization in theory. Theoretically, sales maximization is achieved when a business sells as much of a product or service as possible without making a loss, meaning the average revenue of a product or service is the same as its average cost to produce it. This is often achieved by strategically lowering prices. Here is a numerical example of sales maximization in theory.
