Nowadays we live in the era when a lot of people are trying to become self-employed and start their own business, although a lot of beginners in business field seem to not quite understand the concept of being a successful business owner. Some people feel like the more items they sell, the better their business is performing. They do not understand that the income made from the sale is just as important as the units sold. They really take quantity over quality every day and try to get by. 

The real question is how to find a middle ground between the value and the volume in order to maximize the income. First and foremost, it is important to monitor prices of our competitors. We need to make sure that we as a business are staying competitive on the market by asking for a price that is fairly close to our competitors’ prices. We cannot ask for too much money for the product or service that we try to offer because customers will go with the more economical option for themselves, and we will have a low volume of sales even though the value of our products will be higher than the value of similar products of our competitors. Or vice versa if we have a value lower then our competitors, we will quickly sell out of product but will make less income due to the value being low. 

Another thing that will help us drive both volume and value in our sales is being mindful of who our shoppers are and what they prefer to purchase. For example: if we are trying to sell shampoo, we need to figure out what size of shampoo people prefer: a travel size, a regular size or a value bundle of shampoo and conditioner. Fromm there we would need to set up the price and closely monitor the way people react to our products in order to properly adjust the offers as soon as possible and make the most profit with the best volume. 

I work at Ralph Lauren where we closely monitor our sales and try to understand why customers react to products the way they do. Our corporate partners always ask for our feedback whether its about product quality, prices or the categories that are performing well. They are constantly doing research to try and find that middle ground and to sell the most product at the best value for both the consumer and the company. 

Overall, value and volume are two completely different metrics, and they are in charge of different things, but they tie in together in a long run and ensure longevity and success of the business.  

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