Hello readers, I will be writing about the ways you can improve your firm's profitability. Before I start, how are you people doing? I hope great. Hope you are keeping yourself safe from the coronavirus. The best way to protect yourself is to be a practising muslim. For further details read this article Guides on coronavirus.
Back to today's topic, how can you improve the profitability of your company. Everyone would like to increase the profit their company makes. Here are the ways below.
-Enter a new market, for example you have been targeting the people between the ages of 18 and 25. To improve your profitability, you could make your products appealing to those above that age bracket. Another example, let us say you usually make a product for the middle and the upper class, to increase your profit you can make the product available in smaller sizes so that the poor can afford it. For example, a tin of peak milk which goes for 1300 naira in my area cannot be afforded by the poor, now peak produces them in sachet which goes for 50 naira, so the poor can afford them. Even some rich people buy the sachets too. Thus, your profit will increase. You could also enter a new state or country with your product.
- Increase the price of your products. This is one of the popular methods. Your firm enters the market with services or and goods that are lowly priced (not all firms enter the market with products lowly priced) so that you can penetrate into the market. Thus, after establishing your company, you can increase the price of your products gradually, do not increase them abruptly. An abrupt increase will make customers run away. For example the buscuit you used to sell for 50 naira can be increased to 60 naira but not 100 naira
- Another method is to create new products. For example, pepsi or bigi used to produce just soft drinks, and now they also produce water. With the reputation of their soft drinks they are able to enter the bottled water market easily. You could also create the same product but of inferior quality. Do you know the owners of peak milk also own three crown milk. Three crown milk is cheaper and it tastes good too.
- Train your staff well on marketing and treat them very well. The way your staff relates with potential customers has an influence on how many customers you would have. Have them bring you more customers. In other words, the customer service should be good.
- Another method is to reduce the size of your goods. For example, you used to sell a bag of pure water (60cl per sachet) for 100 naira. You could reduce the size of sachet to 50cl and still sell it for 100 naira. You could be more competitive by selling the bag for 80 naira. Some customers would prefer it if it is sold at a cheaper price because some cannot finish a 60cl sachet of pure water so they go for the 50cl.
- Lastly, you should look for ways to reduce your cost. You can reduce your costs by negotiating with suppliers, like to get a discount for buying in bulk. Your cost can also be reduced by minimizing waste, training staff to be efficient and effective with resources.
Make sure your business is halal. Everything should be done seeking the pleasure of Allah. Part of seeking the pleasure means hoping for a reward from Him in this life and the Hereafter. Everything happens according to the will of Allah (you have freewill, therefore, you are responsible for your actions).
Halal means anything lawful Islamically.
Alhamdulillah (Praise be to Allah). May Allah send peace and blessings to Prophet Muhammed (P.B.U.H). Thank you for reading this article. Like this page on facebook. Keep reading this blog regularly. Cheers!
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