Author(s)

Shaoyong Hong, Chun Yang^*, Hongwei Wen

Huashang College, Guangdong University of Finance & Economics, Guangzhou, China.

“Low profit and high sales” is a strategy to increase sales volume by reducing the profit of unit goods, so that businesses can gain more profits. For flexible goods, price reduction can increase the total revenue, but when the goods are lack of flexibility, price reduction will reduce the total revenue. In this paper, according to the sales data provided by a supermarket, we preprocess the data, establish appropriate indicators to measure the daily discount strength of the mall, and establish a mathematical model between the discount strength, sales and profit margin. Through these models, we found that meager profits do bring up sales, but too low discounts can also hurt total profits. In addition, when shopping malls implement discount promotions, they will also bring some negative effects, and we give some suggestions for this.

Low Profit and High Sales, Profit Margin, Discount Rate, Price Elasticity of Demand

Hong, S. , Yang, C. and Wen, H. (2020) Research on Sales Strategy Based on Supermarket Pipeline Data. Journal of Data Analysis and Information Processing, 8, 99-109. doi: 10.4236/jdaip.2020.83006.