Question

How you can minimize expenses and maximise revenue of your business? Explain why it is difficult for you some time as a manager to minimize cost in business.

Answer 1

Businesses can use different pricing strategies when selling a product or service. Prices can be adjusted to increase the profitability of each unit sold or the market as a whole. It can be used to protect existing markets from new entrants to increase market share or enter new markets.
Capital value is a price set by a monopoly to prevent economic and illegal market entry in many countries. Secondary cost is the price that participants will face when joining the company as long as the current company does not reduce production. The set price is lower than the average production cost or low enough to make the introduction unhelpful. The amount of money produced by current companies to act as a barrier is more than optimal for monopoly politicians, but it can still lead to higher economic growth than gain in perfect competition.

The problem with strategic pricing is that when you enter the market, the volume used as a threat to block entry is no longer the best response of the current company. This means that in order for a set price to be a barrier to entry, a threat must become something that can be trusted. The way to achieve this is for companies to now limit themselves to producing a certain amount of money, whether access or not. An example of this could be if the company signs an alliance contract for a certain (high) level of employment over a long period of time. In this strategy, the price of the product becomes the limit according to the budget.

Reduce working hours: If your business does not need to open at certain times, consider reducing your hours to reduce salaries and other operating costs. Closing on your slowest day can also be a great time for strategic business planning.

Use technology to reduce administrative costs: streamline administrative processes and reduce labor and material costs. Instead of paying employees or IT consultants to manually back up your business data, for example, cloud services can back up your data automatically and securely, often with savings.
Share your workplace: Depending on the business, you can save money by sharing your space. Whether you rent or own an office, see if you can find another business or start using your office when you are not there.
Review your vendor: If you have been using the same vendor for many years, there may be other vendors you can use for a better solution. For office supplies, going through an online supplier or store can provide savings. When browsing, using different websites can help you get the best value. You can also save by using unified communications such as online conferencing, chat and video conferencing.

Instead of raising wages, offering value-added to workers: Employees are always looking for salary increases, but it is not always about money. Value additions such as more flexible working hours or autonomy can add value. At first, employees may not see it, but because they use these added values, it can give them a different lifestyle, which may mean more to them than a pay raise.