A common mistake made by many is to milk dry an opportunity all in one go. No doubt there have been many that advised us to strike while it is hot or to maximise our profit when things are good, this only applies to certain trades or businesses like speculation of the stock market of those dealing with seasonal goods like fashions or special fruits that are only available once or twice a year.
Those involved in long term trades where business depends on long term customers should never attempt to cash out all at once. They should practise laying out the bait. For those in the retail business, cashing out on their customers once too often will result in customers walking away and never coming back.
There are times when you can cash out and there are times when you have to hold back. If you happen to lay hands on certain items that is will only be sold once and never again, then you should cash out and maximise your profits for there will never be a second chance for you customers to lay hands on such an item. However, if items are you long term stocks and sold daily to your regular customers, make sure you bait them to come back by selling those items at a fair price.
Some shop owners are always on the lookout for these sometimes rare but useful items to maximise their profits. For a hardware store owner like me, I sometimes get chances to buy unique items that my suppliers brings in from China only once or twice a year for their promotion drives. Some are really practical and attractive items like beautifully crafted kitchen knives. These comes quite cheaply when bought in bulk and profit margins can be as high as 150%, but that is something that cannot happen daily, so when the opportunity arises, we max out. Never do that for items that you sell daily. This way you won’t kill the goose that lays the Golden Egg, your regular customer.
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