The importance of turnover in a business.

[Etini]

Turnover in business refers to the rate at which goods or services are sold out. For instance, if it takes Company A two days to sell off 100 units of its products, and it takes Company B five days to sell off the same 100 units of the same product, we can say that Company A has a higher turnover than Company B.

Having a higher turnover can be a product of so many factors ranging from marketing strategy, pricing, customer service, and other related factors. One thing is certain though, any company or business organization that keeps a product longer than necessary is not making business progress. Every business has to have a high turnover to make progress and grow. A person that sells 19 liters of honey every day can't be compared to a person that sells 40 liters of honey a week. What can businesses do to increase turnover? They can increase turnover by reducing the price to a reasonable level. It is better to make a $3 profit and spread it over 1000 units., rather than make a $20 profit over 100 units. Customer service should be improved to drive more patronage to the business.

 

[Carpon]

Increasing business turnover is all about logic. Sometimes the market will not go the way you planned and that is why In every business decision you take, you must have properly analysed and studied the market to predict the way it will behave.

As you mentioned, it is better to sell more goods even if you will be maximising less profit than to sell very little over the same period of time and make a higher amount as profit. And indeed this is one of the best ways that businesses increases their overall turnover.

So actually if increasing business turnover is your major aim and concern that will be a nice idea. It helps you to attract a lot of patronage since you sell at a relatively lower price than others: and of course everyone will love getting discount!

But when your main aim is profit making, this may not really give you the result you expect.

 

[King bell]

A factory churns out widgets constantly, it does not just produce them. Many people equate turnover with "businesses dying," this idea is very misguided. One of the most important properties of a good business is the ability to keep up turnover. Successful businesses will always have new business coming in, despite how well it has been performing so far. A company's continued success hinges on its ability to keep churning out products and increasing revenues at a steady pace over time.

The key drivers of good turnover are growth, profitability, and market share. These are the three drivers businesses must embrace in order for it to thrive. A company's success is measured in revenue growth and stable profit margins, these two properties make up a companies health and well being. The best way to increase revenue is through sales and marketing activities such as advertising, product promotion, sales training, and sales meetings. This is because customers like variety so they keep coming back to your products if you change what you put out there each time.