3 simple ways to maximize profit in a business

[Augusta]

A business is about buying and selling for a profit. Without profit making there’s no business. So how best a business cans makes the needed profit. See the 3 simple ways below

Sell at a price higher than the cost price:

This is like the first rule of maximizing profit; you will only make profit when your selling price is above your production cost or the cost price of your product

Lower expenses

What kill some businesses are high expenses, cut out worthwhile expenses and spread the expenses in the long run

Make sales

No truer words than this, you can only make profits by making sales. So try to make sales daily to have some profits.

What’s your thought on this?

 

[Bookwormlux]

I like the idea of lowering expenses. A lot of people are making enough money from their business but they cannot give proper account of how they are spending their earninngs. This is usually because they spend so much on liabilities and this makes them to lose out in no distant time.

 

[Alexandoy]

The pricing is tricky because it would depend on the type of customers. I have noticed some items being sold in upscale malls to be double the price of the same product in a lower class mall. If you can define your customers then you may increase the mark up for a bigger profit.

 

[Augusta]

I like the idea of lowering expenses. A lot of people are making enough money from their business but they cannot give proper account of how they are spending their earninngs. This is usually because they spend so much on liabilities and this makes them to lose out in no distant time.

Right from time immemorial when once your expenses is higher than your income, you are headed for failure in your business.so any business that needs progress must cut down excessive spending especially on frivolities that doesn’t add to the growth of your business. Expenses is a big drain to any business

 

[Augusta]

The pricing is tricky because it would depend on the type of customers. I have noticed some items being sold in upscale malls to be double the price of the same product in a lower class mall. If you can define your customers then you may increase the mark up for a bigger profit.

I noticed same too in my locality and I was once tempted to ask why? well, I was told the upscale marketplace provide more conveniences for its customers. Like providing free car park, clean environment, rest rooms, lighting and other stuff. So they factor these extra expenses into their price of their products. So without this they can make enough profit

 

[Bookwormlux]

Right from time immemorial when once your expenses is higher than your income, you are headed for failure in your business.so any business that needs progress must cut down excessive spending especially on frivolities that doesn’t add to the growth of your business. Expenses is a big drain to any business

It is an obvious truth, but so many people fail to learn from the experience of others and they tend to always repeat the mistakes that others have made. It is pathetic then as any one who really mean well for their business ought to think about the best strategies that would enable them to benefit more from their business and not lose out.

 

[Abigael]

Those are very good points you have made. They may seem simple but they really help in maximizing profits in a business. I totally agree with the point that too much expenses can really affect the financial state of a business. You will end spending too much of your profits on your expenses instead of adding more stock.

 

[Augusta]

Yes, it is always good to try and have high profit from.your business. it is always good to price your product high. The thing is that you will only make profit when your selling price is above your production cost. So the cost price of your product should always be lower while the selling price is higher.

it is good to watch the expenses of a business what kill some businesses are high expenses, the way out is to cut out worthwhile expenses