We all know that a business must run on its profits. We also are familiar with the following phrase’ “Buy Low – Sell High”! With very few exceptions there is always an upper limit to the selling price for any product or service. That limit will generally come from how little your competition is willing to accept as a profit margin.
When selling the very same item; the profit margin is usually by the competition and not by yourself. People are very price conscious these days and will go out of their way to hunt for the lowest price on any item.
Not every product or service is created equal. You have to make sure the potential buyer know why yours is better than the competition so they can make an informed purchase. Otherwise “Price Is King” will rule their buying decision.
In order to make yourself as profitable as possible you need to find ways that reduce the overall cost of selling your items. If you buy a larger, but sane, quantity will you get a better price? If you pick up rather than shipping your items will you save money?
Restaurants are faced with the difference between prepackaged foods and working with fresh ingredients. Which one is truly cheaper in the long run? Of course, there may be a quality difference as well.
Some merchants tend to sell from a warehouse location rather than a fancy showroom in an attempt to save overhead (and very real) costs. What type of location and amenities does your customer base expect or even demand?
You need to factor in all of your businesses expenses. How does your energy costs and usages effect your bottom line? Does it make sense to have the power company do an energy audit?
Does what you sell have “legs”? Is your product line affected by new technology? When was the last time you saw a pager company? Have your tried to find a Pay Phone lately? Seen a TV repairman recently? How many people do you know (nurses and some doctors excluded) who still wear a wrist watch?
As you know many magazines and newspaper have faded into the era of the buggy whip. News and entertainment is now routinely delivered to the millions and millions of smartphones that have invaded the demographics of all age groups.
Do you need to have true savings on your next printing job – coupon, flyer or brochure? Call MI Printing 623.582.1302 and lets us be your local resource. Effective communication is what your business needs.