ukfinanceaff - 1:14 pm on Aug 3, 2012 (gmt 0)
Increasing volume at the expense of margins is madness, as your fulfilment costs remain unchanged, which invariably means that the price you pay to deliver the product does not come down as your volumes increase.
So, lower margins from reduced price, increased overheads as a result of higher volumes = a stupid reduction on your bottom line.
Unless your increased volume will allow you to buy more cheaply (like Walmart) then it really isn't worth pursuing this policy as it will all end in tears.
Better to find a less competitive market than chase volume in a crowded one, IMO.