Profit is the result of an effective indicator of the business enterprise is not profitable to society of crime, is on the social distribution of its resources, a waste.How to effectively improve the level of corporate profits is one of many operators and managers of the unswerving pursuit, many shallow sense that a higher level of corporate profits is to improve the product sales price and reduce the total cost, of course, can improve product sales and lower pricesThe total cost of business costs is definitely a good decision, this strategy also possible degree do? that deserves serious discussion.I combine years of business management and consulting practice, I believe that the level of corporate profits to improve on the first side to improve the profitability of sales, followed by cost control to enhance business operations.Is to improve the delivery of profitable sales points
1. Improve the product sales price
This method is not the most direct but least practical, first of all our agents to provide product prices or distributors do not agree that we may not agree with the final consumer, and perhaps a single product price increases can result in improved gross margins, but salesand the decline in market share, overall earnings may not increase the amount of the reduction.
2. Lower product sourcing costs
This approach appears to be one of the most direct method to improve gross margins, we think, we require suppliers to reduce the price of products for business, suppliers are not.Why? Because we reduced the profitability of suppliers, this time, providers face a choice, either accept the application of our reduction, while also reducing their costs and make the quality of products being challenged, and ultimately hurt consumers, it maybe a lose-lose result.Therefore, in lower product sourcing costs I propose the modest and the line, because we require suppliers to cut prices, suppliers have to start from lower product costs, and ultimately will affect the quality of the products.
3. To improve the sales structure
Improve the product sales structure without changing the existing sales structure and product procurement cost of sales under the premise of profit improvement.Our products can be divided into three types: impulse products, also known as a firewall products, the product mainly to seize market share, competitors defense, in order to consolidate their market position, this type of product features: low gross margin, sales volume; profit-basedproducts, sales of such products after the impulse products, gross margin was higher than the impulse-type products; image of the products, these products are high margin, low volume, which is mainly to enhance the company's brand image and increase market influence.
We need to improve product sales structure is to improve the profit-based products in the proportion of sales, profits products is the focus of corporate marketing.Impulse products do not have too many recommendations, because the customer name to the product; image products do not push, push, it's useless, because the month typically sold in 10 or less.
4. To improve the customer structure
According to the contribution of profit clients, we can customers be divided into four levels: the most profitable customers, profitable customers, balanced customer, the negative profit customers.In our material resources, time, resources, and the premise of limited human resources, we can only provide the most valuable customers for the selective service, cut down the negative profit customers, improve customer unchanged, maintaining profitability is to improve the customerthe most critical means of sales profits.
5. To improve the customer product sales structure
The most successful companies not only his success, but to help its customers succeed.Enterprises in order to improve its product sales structure, we must help our customers improve product sales structure, so that customers realize improved sales structure, meaning the entire value chain.
Entrepreneurs only five points above the reference, Xin Chi Consulting is willing to give small and medium enterprises to improve the quality of their due profits of wisdom and strength.Wish all a prosperous Year of the Ox entrepreneur, good luck!