Profit the most important reason for which we do business and everyone of us want to make more and more profit or maximum profit as possible. But because of competition you cannot price your product or service too expensive. There is a complex relation between demand, quality and price. We have to understand this concept in order to maximise our profit. If demand for your product is high and their is no competition you can sell your product at high gross margin. This method is used in the business of molecular medicines the company who invented the medicine, has the license and no other company can sell it. sso the company who invented the medicine has complete discretion of the company.

But if you are doing business of a product which is easily available in the market and your customers have many alternatives for your product then there are 2 ways to maximise your profit. First is you can sell your product in bulk with low gross margin. You have to sell at comparatively lower price and attract more and more customers and sell your product in large quantity. You will have less profit on per item but because of bulk selling you will generate good revenue . The second way is to sell less products with high gross margin because of your price many customers may not buy your product for that you have to position your product in premium market like Apple iPhone is a premium mobile. You have to be very careful while marketing your product you have to give a strong reason to buy your product.

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