Influence of Sales and Revenue on Earnings

Beware of trying to directly influence sales and revenue leverage. This will not work. Sales and turnover are target and inventory parameters that serve as key figures, but cannot be directly influenced. A statement such as: “Increase turnover” will lead nowhere. These target parameters must be backed up by a well-coordinated set of measures. Sales and revenue can be influenced by pricing and by promoting sales volume. The latter is also only one target parameter which must and can only be influenced by further bundles of measures. The skillful combination of both variables may result in sales and revenue growth.


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