Purchase quantity * purchase unit price = purchase quantity *80%* purchase unit price/(1-20%);
Where: purchase unit price /( 1-20%)= sales unit price.
Purchase quantity *80%= guaranteed sales volume = purchase quantity *( 1-20%)= purchase quantity * cost rate.
Gross profit margin = (sales unit price-unit cost)/sales unit price =20%
Hu's law tells us that if we want to be competitive, we must make our products marketable. If you can increase the marketability by 1%, then you can open the price advantage of 1% with others. With this 1% advantage, you have the foundation to win the competition.