Kennee on October 30, 2009 at 1:01 AM

nope... discount so that hopefully moar customer come... rather than normal price den nobody come... XD so more likely... they still make profit la... XD
Btw, nanged ya on innit and also ad-clicked ya... ^^

Jason Lee on October 30, 2009 at 3:08 AM

Using example is easier.
Assuming you current sales for t-shirt is 1000 units, RM 10 each.
Fixed cost, rental blablabla = RM 2000
Variable cost/cost per unit = RM 3
So your profit
= RM [(1000x10) - (1000x3) - 2000]
= RM 5000
If discount of 10%is given, new price = RM 9. We assume that sales would increase about 30%, which is 1300 units
So your new profit
= RM [(1300x9)-(1300x3)-2000]
= RM 5800

If discount fail to work for a business, is either it's original reputation is already bad, or they fail their math.

Superman on October 30, 2009 at 11:23 AM

Haha. I wonder. You need to pay 110%? -- become + mah. :)

conan_cat on November 1, 2009 at 8:20 PM

i think jason just gave us a very good lecture on economics. :D