How to increase company's profit

Gross profit is all the money coming entrepreneur, company or organization. Net profit is the difference between the gross income and expenses. He and the other indicator is calculated for a certain period of time – a month, a quarter, a year. To increase net profit, it is necessary to increase sales or reduce costs.

Instruction

1. At a manufacturing plant, as a rule, choose one of the strategies of either increasing profits or reducing costs. Each strategy requires a certain investment of effort, investment and time, so to go from two directions, not every business can. Select something that is easier and cheaper. Usually the production company itself is not engaged in the sales and delivers the goods to wholesale buyers. The construction of a network of its stores, hiring and training of sales staff the company is unprofitable – no trading margin will not justify the costs incurred for the sale of a single product produced by the plant. The increase in the volume of production is also costly, with the necessary purchase of additional equipment, construction of new plants, etc. Therefore, most industrial organizations are on the path of reducing costs. Upgrade equipment, reduce staff, non-productive costs, utilities, are looking for cheaper raw materials and components, reduce taxes. At the very least – reduce the workers ' wages.
2. The retailer often cost reduction turns into reduction in the quality of goods sold. Therefore, in the trade often go on ways to increase sales – attract customers and stimulate them to buy more goods. In order to attract buyers arranged a variety of promotions – discounts on certain days or hours, discounts to regular customers (for special cards) or a particular category of buyers, tastings and promotions of new products, lower prices for certain products, gifts to those who bought the product for a certain amount. Advertise on radio and television, in Newspapers and magazines, hand out or distribute in the mailboxes of leaflets printed and spent on outdoor advertising. Placement of goods on the shelves, too, affects sales – in prominent places, on the top shelf exhibited a more expensive product. Next to the cash register to place shelves with piece goods – chewing gum, chocolate bars, batteries, razors, etc.
3. In cafes and restaurants also employ a variety of techniques for attracting new customers. Serving authentic cuisine or dishes of their cuisine from different countries, different varieties of alcohol, coffee and sweets. Periodically changing the atmosphere of the hall, branded clothing of the waiters. Some restaurants regularly organize a week of meals of any cuisine. For example, the Indian. Room is made in Indian style, the waiters dress in traditional Indian clothing, is in advance given. Other establishments are made in unique style and focus on a certain category of customers. For example, sports bars, family dining with children's rooms and entertainers, historical cafés, devoted to life in the Soviet Union, made in the American style of the 60's or in the style of cowboy saloons.