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Profit Driver: Sales Volume

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Abstract

Management of sales volume—one of the three profit drivers—is about steering the volume in such a way that profit is maximized, or at least improved relative to a starting situation. Another goal can be to minimize the effects of a potential profit downturn. Higher volumes only make sense when they drive higher profits. When a volume decline brings about an increase in profit, the company should accept that decline.

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Notes

  1. 1.

    Chicago Tribune, January 9, 2007, see also “GM’s Employee-Discount Offer on New Autos Pays Off,” USA Today, June 29, 2005.

  2. 2.

    See Simon-Kucher & Partners, Global Pricing Survey 2019, London 2019.

  3. 3.

    See Hermann Simon and Martin Fassnacht [1].

  4. 4.

    See Klaus Meitinger, “Wege aus der Krise, ” Private Wealth, March 2009, pp. 26–31.

  5. 5.

    Ibid.

  6. 6.

    See Simon-Kucher & Partners, Global Pricing Study 2014, Bonn 2014.

  7. 7.

    Robert L. Phillips [2], as well as Peter O'Connor and Jamie Murphy [3].

  8. 8.

    See Robert Klein and Claudius Steinhardt [4] as well as Robert G. Cross [5].

  9. 9.

    Study of 76 machinery manufacturing companies, conducted by Simon-Kucher & Partners.

  10. 10.

    https://www.festo-didactic.com/int-en/.

  11. 11.

    See “Wohnlichkeit in der Flugzeugkabine,” Neue Zürcher Zeitung, February 5, 2007, p. 7.

  12. 12.

    See Madhavan Ramanujam, Georg Tacke [6].

References

  1. Simon, H., & Fassnacht, M. (2019). Price Management, New York: Springer Nature, p. 201.

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  2. Phillips, R. L. (2005). Pricing and Revenue Optimization, Stanford: Stanford University Press.

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  3. O'Connor, P., & Murphy, J. (2008). Hotel Yield Management Practices Across Multiple Electronic Distribution Channels, Information Technology & Tourism, 10(2), pp. 161–172.

    Article  Google Scholar 

  4. Klein, R., & Steinhardt, C. (2008) Revenue Management, Berlin: Springer. 

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  5. Cross, R. G. (1997). Revenue Management, New York: Broadway Books. 

    Google Scholar 

  6. Ramanujam, M., & Tacke, G. (2016). Monetizing Innovation: How Smart Companies Design the Product around the Price, Hoboken: Wiley.

    Google Scholar 

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Correspondence to Hermann Simon .

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Simon, H. (2021). Profit Driver: Sales Volume. In: True Profit!. Copernicus, Cham. https://doi.org/10.1007/978-3-030-76702-0_7

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