Author(s)

Wang Qian

Corresponding Author

Wang Qian

Abstract

Small profits and high sales refer to the strategy of expanding sales at low prices and low profits. For a commodity with flexible demand, when the price of the commodity falls, the increase in demand (and thus sales) is greater than the decrease in price, so the total revenue increases. This paper mainly analyses the sales situation of a shopping mall (the data are from the E question of the National University Mathematical Modeling Competition in 2019). It calculates the turnover, profit, profit margin and discount intensity of the 764 days, and explores the relationship between these factors. From the point of view of the market, this paper discusses how discounts affect the strategy of “small profits but high sales”.

Keywords

Multiple regression of discount strength of profit margin of small profits and quick sales turnover