How to increase the profit of the enterprise

Gross profit is all cash flowing to an entrepreneur, enterprise or organization. Net profit is the difference between gross profit and expenses. Both that, and another indicator is calculated for a certain period of time - for a month, for a quarter, for a year. To increase net profit, you need to increase gross, or reduce costs.

Instruction manual

1

At a manufacturing enterprise, as a rule, they choose one of the strategies - either increase profits or reduce costs. Each of the strategies requires a certain investment of labor, investment and time, so not every company can go in two directions at once. Choose what is simpler and cheaper. Typically, the manufacturing company itself is not engaged in sales, but sells the goods to wholesale customers. Building a network of their stores, hiring and training sales staff for an enterprise is disadvantageous - no trading margin will justify the costs incurred in selling a single product manufactured by the plant. Increasing the volume of products is also costly - it requires the purchase of additional equipment, the construction of new workshops, etc. Therefore, most often manufacturing organizations are on the path to reducing costs. They are modernizing equipment, cutting staff, non-manufacturing costs, paying utility bills, looking for cheaper raw materials and components, and optimizing taxation. In the most extreme case, they cut wages to workers.

2

In a trading company, often cost reduction results in a decrease in the quality of the goods sold. Therefore, in trade, they often follow the path of increasing sales - they attract buyers, stimulate them to purchase more goods. In order to attract buyers, a wide variety of promotions are organized - discounts on certain days or hours, discounts for regular customers (on special cards) or a specific category of customers, tastings and promotions of new products, lower prices for certain products, gifts for those who bought goods for a certain amount. They advertise on radio and television, in newspapers and magazines, distribute or distribute printed leaflets through mailboxes, and spend money on outdoor advertising. The placement of goods on shelves also affects sales - the most prominent places on the upper shelves are more expensive goods. Shelves with piece goods - chewing gums, chocolate bars, batteries, razors, etc. are placed near the cash register.

3

Cafes and restaurants also use various techniques to attract new customers. Original dishes or dishes of their cuisine from different countries, various varieties of alcohol, coffee and sweets are offered. Periodically, the atmosphere of the hall, the company clothes of the waiters. Some restaurants regularly organize a week of cuisine. For example, Indian. The hall is decorated in the Indian style, the waiters dress in national Indian clothing, advertising is given in advance. Other establishments are made out in a unique, inimitable style and are guided by a certain category of clients. For example, sports bars, family cafes with children's rooms and animators, historical cafes dedicated to everyday life in the USSR, made in the American style of the 60s or in the style of cowboy saloons.