Price vs Volume Growth
What would you prefer to see driving a company's top line growth? An increase in the price of the product or an increase in the volume sold?
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Not positive, but an increase in volume sold generally indicates an increase in a company's market share, and that's generally a good thing when it comes to growth.
volume
It looks like you can justify a response to this question either way. I'd say it depends on the industry... and your bias. If we are in a high volume, low margin industry, where we are price takers, then an increase in a volume sold would imply either an overall market growth or higher market share captured--something that we like. On the other hand, if we are in a niche environment with high product differentiation and higher margins, an increase in the product price without a significant drop in demand means we are attracting customers presumably because of our products' uniqueness. Since I don't like the idea of a product being a commodity, I would prefer price-driven growth because it would allow us more wiggle room, at least short term, should consumer preferences change (i.e. slash the prices, change product features/services).
Volume, sucka. Hella lucrative. That's what got us here in the first place.
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