Should companies focus on high or low priced items?

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Host: Should companies focus on high or low priced items?

Gary Ryan Blair: So, should companies focus on high or low priced items? That's pretty simple. There is concept, really, what you might want to call a SIE, you focus on the products and services that give you the greatest return on sales, the greatest return in terms of investment and on equity. What that means is if you have 20 products in your market place and you are a sales person or a company, the best thing for you to do is identify all the profit margins for each one. If you're paid on commission, if you're sales person, without a doubt what you want to do is identify how many products that you can sell, the fewest amount and which one is going to provide with the greatest return.

What that means is you are utilizing, you are combining two things, smarts identify where the profit margins and where you are going to focus your time and energy, very often what people with organizations do is it with so much focus on low priced items or on low margin areas or territories or what have you and then wind up just again underutilizing or underperforming their capacity. So, the key to it truly is identify the investments, the things that are going to give you the greatest return on equity, on sweat, on time, on money. That's where you put your focus and the return will be always be there appropriately.

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