Sunday May 26, 2024

  How to find reasons for low profit

It is clear that all this involves significant costs, and therefore with a decrease in profits. Huge amounts of money are frozen in these facilities that do not work for the company. As a rule, if the number of objects in the company’s assortment reaches a critical level, then this is a direct, and very long and very painful path to bankruptcy with eyes wide open, because the reason for what is happening is not even clear.

The eighth reason is the lack of a key to the market.

Without it, products are developed and produced that do not realize the idea of the market, do not meet the real needs of buyers. Moreover, they can be of very high quality, they can have an excellent design and an attractive price, but there is no correspondence to the idea of the market, therefore, sales are weak and random.

Huge amounts of money are spent on their creation, as well as on warehousing and transportation, which significantly reduces the company’s profits, and often even leads it to losses. In order for a product to be in demand, it must correspond to the idea of the market. The study of market ideas is often neglected in order to save money, but in the end they receive losses much greater than the costs of this procedure.

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