Margin Magic: Four Steps to Building Greater Profit

Even when an item is above the threshold, it’s always worth asking vendors for a price reduction, or perhaps a volume rebate, to increase overall margin.

Similarly, if vendors offer you a cost reduction, don’t just automatically reduce the retail price to reflect the change. If the item still performs well and it’s early in its catalog lifecycle, maintaining the retail price and enjoying the increased margin may be the right thing to do. You always can lower the retail price later if the product starts to trend down.