Reply to post: Re: Understandable...

EE looks at its call charges, hikes a bunch, walks off giggling

Anonymous Coward
Anonymous Coward

Re: Understandable...

It depends does putting the price up increase or reduce the revenue/profit?

Seeing as the cost for an individual to make a call is very low (the Cost of Sale) then by reducing prices you might increase the take up and therefore increase overall profits.

We had a product with minimal cost of sale per user but a large yearly fixed cost for us to provide. We were barely breaking even, reduced the cost by 50% and now we have doubled the revenue paying for the service twice over.

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