When does the myth “more sales means more profit” fail to hold true?

This belief overlooks the complex relationship between revenue, cost, and profitability.

• High Sales, Low Margins: Deep discounts or expensive acquisition costs can kill profit.

• Hidden Operational Costs: Scaling too fast without infrastructure leads to inefficiencies.

• Returns, Refunds, and Defects: High volume doesn’t always equal customer satisfaction.

• Unsustainable Growth: Rapid growth may mask financial instability or cash flow issues.

• Cash Flow Crunch: If expenses outpace receivables, the business may struggle despite revenue.

Businesses must focus on profitability per sale, not just total volume.

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