7 FACTORS THAT MAKE BUSINESS PROFIT MARGIN SHINIER

[zihadhasan010]

"I've been in business for years, but I can't seem to see the profit. It's really sad, huhu."

You guys have this kind of problem.. we're working hard to do business, but the profits are so thin..

Profit margins in business can determine whether we make a profit or not in business.

It also determines whether our business can grow or not.

It determines our sustainability in business..

There are several factors that are making our profit margins lower! Want to know?

Read below, I have already shared the solution…

Table of Contents
#1. Pricing
#2. Production Cost
#3. Operation Cost
#4. Rewards/Commissions
#5. Marketing Cost
#6. Market Situation
#7. Revenue
#1. Pricing
If you set the right price, you can be sure that your business can make a big profit.

But if the price is wrong, please let the scope know!

So, how do you set a profitable price?

Before you put a price, you need to list all the costs involved.

For example, raw material costs, labor costs, shipping costs, etc.

If you don't take all these costs into account, you may set a price that isn't enough to cover your costs.

After that, you won't even make a profit, you'll even lose more!

Next, you have to see who the target customer is ?

Identify your target market because the price you set needs to be within their means.

For example, if you sell luxury goods, you can set a high price because your target market can afford it.

But if you sell cheap goods, set low prices for target markets that like cheap prices.

Study your competitors' prices. If your competitors are charging lower prices but their products are the same as yours, you need to rethink your pricing strategy to be more effective.

Maybe you can provide added value like a free gift or better service to justify your higher price.

You can try psychological pricing , a technique that many entrepreneurs use.

For example, set the price to RM9.99 instead of RM10.00.

It may seem like a small difference, but finland phone data psychologically, customers feel that the RM9.99 price is cheaper even though the difference is only one sen.

Another way, Value-Based Pricing..

Set prices based on the value your product provides to customers.

If your product has high added value, you can set a high price.

Customers who understand the value will be willing to pay more.

Some of the ideas we can do are... adding new products, setting up marketing funnels, offering services or products at premium prices.

So, there are a lot of things you need to consider when it comes to pricing.

Don't just set prices, because the right pricing can make your business more profitable.