Hello, Please rate my essay and give Susggestions

Hello,
I took Manhattan Practice test and forgot to copy argument but it stated that price reductions in energy drinks was highly successful as sales in units dramatically increased. thus to increase profitability of te company it should have similar promotional price reductions on all products of the company.

The argument states that in order to improve profitability of the company and enhance its perception in the eyes of the customers, company should have promotional price reductions on all drinks it produces. Stated this way, argument has several flaws and is based on assumptions that may not necessarily apply to this argument. For example: promotional prices might not be driving force behind dramatic increase in sales of energy drink. These two events might just be coincidence. Also, even if price reductions have stimulated sales growth in units, we still doesn't know how it reflected on revenue on the company, let alone on profitability of the company. And finally, applying same strategy on other products of company can be counterproductive as there might be products, sales of which are already at most profitable point.

First issue to be addressed is weather promotional price reductions were driving force behind dramatic increase in unit sales. This is the one of the main premises, on which argument is based. However, to evaluate credibility to this assumption we need to examine other factors and events happening during the promotion. For example, even though price cuts might have been favorably received by customers, main factor influencing their decision might have been any changes in the flavor of energy drink during that period. In addition, during that period company might have extended its distribution network, which would allow company to increase sales in units. There are also such factors as general increase in demand of energy drinks and shortage of competition company drinks on the market during that period. All of these aspects remain unknown.
in addition, one must understand that increase in unit sales does not guarantee increased revenues. To evaluate influence on revenue we need to know whether percentage increase in unit sales was greater thank percentage discount on unit price. Unless we examine product of these two measures we can not correctly evaluate Financial result of the promotion. So as we see there is a huge difference between increased unit sales and increased revenue let alone profitability. Assumption that this promotion has increased profitability is weak at its best. Price cuts might have decreased profit margins to such extent that increased sales would be counterproductive.

To sum up, author of the argument fails to consider several key factors while making conclusion. Market conditions, changes in characteristics of the drink, changes in distribution strategy and financial aspects of the promotion all need to be considered before making any further decision. Until then argument remains unsubstantiated and open to debate.