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So a great deal of research often precedes the selection of a name. Sometimes a price must be decided. A high price creates
resistance. It tends to limit ones field. The cost of getting an added
profit may be more than the profit. It is a well-known fact that the
greatest profits are made on great volume at small profit.
Campbell's Soups, Palmolive Soap, Karo Syrup and Ford cars are conspicuous examples. A price which appeals only to - say 10 percent - multiplies the cost of selling.
But on other lines high price is unimportant. High profit is
essential. The line may have a small sale per customer. One hardly
cares what he pays for a corn remedy because he uses little. The
maker must have a large margin because of small consumption. On other lines a higher price may even be an inducement. Such lines are judged largely by price. A product which costs more than theordinary is considered above the ordinary.
So the price question is always a very big factor in strategy.
Competition must be considered. What are the forces against
you? What have they in price or quality or claims to weigh against
your appeal? What have you to win trade against them? What have
you to hold trade against them when you get it?
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