Gross profit is all cash flowing to an entrepreneur, enterprise or organization. Net income is the difference between gross profit and expenses. Both the one and the other indicator is calculated for a certain period of time - for a month, for a quarter, for a year. To increase the net profit, it is necessary to increase the gross, or reduce the costs.
Instructions
Step 1
In a manufacturing enterprise, as a rule, one of the strategies is chosen - either increasing profits or reducing costs. Each of the strategies requires certain investments of labor costs, capital investments and time, so not every enterprise can go in two directions at once. Whatever is simpler and cheaper is chosen. Typically, a manufacturing enterprise itself does not engage in sales, but hands over the goods to wholesale buyers. Building a network of its own stores, hiring and training sales personnel is not profitable for the company - no trade margin will justify the costs incurred for the sale of a single product manufactured by the plant. An increase in the volume of manufactured products is also costly - it is necessary to purchase additional equipment, build new workshops, etc. Therefore, most often production organizations follow the path of cost reduction. They are modernizing equipment, reducing staff, non-production costs, utility bills, looking for cheaper raw materials and components, and optimizing taxation. In the most extreme case, workers' wages are cut.
Step 2
In a trading enterprise, cost savings often translate into 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 arranged - discounts for certain days or hours, discounts for regular customers (with special cards) or a certain category of buyers, tastings and promotions of new products, price reductions for certain products, gifts for those who bought goods for a certain the amount. They place advertisements on radio and television, in newspapers and magazines, distribute or distribute printed leaflets in mailboxes, and spend money on outdoor advertising. The placement of goods on the shelves also affects sales - in the most prominent places, more expensive goods are displayed on the upper shelves. Shelves with piece goods - chewing gums, chocolate bars, batteries, shaving razors, etc. are placed next to the checkout counter.
Step 3
Cafes and restaurants also use various techniques to attract new customers. We offer original dishes or dishes of their cuisine from different countries, various types of alcohol, coffee and sweets. The furnishings of the hall, the branded clothes of the waiters change from time to time. Some restaurants regularly host a week of specialty cuisine. For example, Indian. The hall is decorated in Indian style, waiters dress in national Indian clothes, advertising is given in advance. Other establishments are designed in a unique, inimitable style and focus on a specific 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.
