The Secret Of Increasing Profits For Garment Enterprises

Profit is one of the effective indicators for measuring the results of enterprise operation. Enterprises do not make profits, which is a social crime. It is a waste of resources allocated to society.

How to effectively improve enterprises

Level is the unswerving pursuit of many operators and managers. Many people believe that raising the profit level of enterprises is to increase the selling price of products and reduce the total cost of enterprises. Of course, it is not only a good decision to raise the selling price of products and reduce the total cost of enterprises, but also how feasible is this strategy? It is worth our serious discussion.

Combined with years of management and consulting practice, the author thinks that to improve the profitability of enterprises, we must first improve the profit level of the sales side, followed by strengthening the operation cost control of enterprises.

Now we will provide some suggestions for improving the level of sales profits.

1. increase sales prices

This method is the most direct but not the most practical one. First, the price of our products will be disagreed with our distributors or distributors. We may not agree with the final consumers. Maybe the price increase will lead to the increase in gross profit margin, but the decrease in sales and market share, and the overall profit may not increase.

2. reduce product purchase cost

This method seems to be the most direct way to raise gross margin. At the same time, we would like to ask suppliers to reduce supplier's price and suppliers.

Why? Because we have reduced the profitability of our suppliers. At this time, suppliers are faced with a choice either to accept our reduced applications, but also to reduce their costs, so that the quality of products is challenged, and ultimately consumers are hurt, so they may get double lose results.

Therefore, the author recommends moderation in reducing the cost of product purchase, because how we ask the supplier to reduce the price, the supplier must start with reducing the cost of the product, and ultimately will affect the quality of the product.

3. improving sales structure

Improving sales structure is to improve sales profits without changing the sales structure of existing products and the cost of product purchase.

Company products can be divided into three types: impulse products, also known as firewall type.

The product is mainly to seize market share and defend competitors, thus consolidating its market position. The characteristics of this product are low gross profit margin and large sales volume; profit type products are sold only after impulse products, gross margins are higher than impulse products; image products, such products are of high gross margin and low sales volume, which mainly enhance brand image and increase market influence.

To improve the structure of product sales, we need to increase the proportion of profit products in the sales business, and profit oriented products are the focus of marketing.

Impulse products need not be recommended too much, because customers call the products they want; image products are not pushed or pushed, because sales are generally less than 10 in a month.

4. improving customer structure

According to the customer's contribution to profits, we can divide the customers into four levels: the most profitable customers, the profitable customers, the flat customers and the negative profit customers.

Under the premise of our material resources, time resources and limited human resources, we can only provide the most selective quality service to valuable customers, cut off negative profit customers, improve flat customers, and maintain profitable customers is the most critical means to improve sales profits.

5. improving customer product sales structure

The most successful enterprise is not only their own success, but also to help their customers succeed.

Enterprises need to improve their products effectively.

The structure must help customers improve their product sales structure, so that customers can understand the significance of improving product sales structure to the entire value chain.