Maximising sales revenue is an alternative to profit maximisation Maximising sales revenue is an alternative to profit maximisation, and occurs when the marginal revenue, MR, from selling an extra unit is equal to zero.
Sales maximisation is another possible goal and occurs when the firm sells as much as possible without making a loss. Not-for-profit organisations may choose ...
Sales maximization and profit maximization are distinct business objectives. Sales maximization is an approach to business where the company’s primary ...
Sales are the first step toward profits. Without sales, there are no profits. Profit is also called income, net profits and net income. Sales are also called revenues ...

Sales maximisation typically involves businesses charging lower prices for their products contrasted with profit .
This can be good news for consumer welfare in the short run as the level of consumer surplus increases.
A business can focus on maximizing either revenue or profits, but usually cannot pursue both goals simultaneously. To maximize profits, the company has to sell its products or services at a healthy profit margin; in other words, it has to charge significantly more than what it costs to deliver the product or service. When attempting to maximize sales, however, a business must cut prices to very near costs. In fact, it is not uncommon for a newly-established company to sell at a loss to build a loyal consumer base and gain name recognition in the industry.
Although the ultimate long-term goal of a business is maximum profits, a revenue maximizing strategy has various benefits. First, it allows a business to build consumer loyalty. Once a sufficient number of buyers habitually buy the product, prices can be gently raised to increase profits. Secondly, maximum revenue results in higher output levels, which in turn can help reduce costs over the long term. Selling 1,000 instead of 200 bagels it will allows the baker to buy flour in bulk at lower prices. It can also help move to larger industrial scale ovens to reduce the per-unit manufacturing costs.