Revenue – direct costs = gross profit – indirect costs = net profit.
If you give a discount, your revenue goes down, but your direct and indirect costs stay the same.
The discount comes right out of net profit.
Discounting is not a good way to get new business.
Thank you! I am grateful for Alaska and the team I have there working to grow every day!
I agree discounting is not a good way to attract new business, but what about keeping you people busy during the slowest of times?