Hanna Analytics

In the world of business, setting the right price for your products or services is crucial. It is a delicate balancing act between maximizing your profit margin and optimizing your total revenue. An ancient Chinese proverb says that smaller margin brings much more sales (薄利多销), while another states that earning 10 thousand times your cost (一本万利).  These two represents two drastically different business goals. One is to maximize the revenue, the other is to maximize the profit. Where is the optimal point between total revenue and profit margin? How much should you price your product or charge your clients for your service? Let's dive into the key factors to consider when developing your price strategy. What are Profit Margin and Total Revenue Before we discuss strategy, let's clarify these two important concepts: Profit Margin:  Profit Margin is the percentage of sales that turns into profit after all costs are accounted for. It is literally how much profit you make per sale....

Brand Equity: Definition, Impact, Measurement, and Best Practices - Explained with industry example Brand equity is a crucial concept in marketing that can significantly influence a company's success. To understand its importance, we can ask ourselves a few questions. For example, are you willing to pay higher price for a pair of shoes from your trusted brand instead of buying a cheap one from some brand you have never heard of? What is Brand Equity? Brand equity, according to Professor Aaker's definition, is a  set of assets or liabilities in the form of brand visibility, brand associations and customer loyalty that add or subtract from the value of a current or potential product or service driven by the brand . The definition highlights that brand equity is not simply a positive value; it can also negatively impact a product or service associated with the brand.  It's an added or subtracted value that a brand name brings to its offerings.  The Impact of Brand Equity Str...