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In economics, profit maximization is the short run or long run process by which a firm may determine the price, input, and output levels that lead to the highest profit.
The first step is to reduce business expenses and put prices in a strategic way that will boost your sales.
We reached a time where we even struggled to pay our wages and salaries. Rentals and other monthly financial obligations. I shared on the strategy that we were going to use. Now we are enjoying good business.
My articles are not academic, they are practical because I share real events and real experience which is traceable for those who want to learn. I take this as an opportunity for startups to learn the practical way.
Another way to maximize profit
Back to the topic of the day. The other way to maximize profit, one has to learn negotiating skills. Negotiating skills on purchasing price from the supplier. I negotiate for a lower price to an extent where some of my suppliers end up asking do I still want to buy or want to be given for free.
Buy in bulk at wholesale prices. You can’t afford to offer lower prices if you are purchasing your stock at a higher price.
Deal with manufacturers or big wholesalers if possible. Avoid dealing with a third party. It is very often that mower days there are people who made themselves brokers. They become brokers because they know where certain materials are found but they don’t have money, so they come to you, take your money and go to buy the things you want at a lower price and sell to you at a higher price. All this is done using your money.
Try to do research and see what you can buy directly.
By B. Marambire.
Check also;
- How To Maintain Good Profit In Your Business
- Why Most Young People Fail To Breakthrough In Business
- Why It’s Important To Understand Your Profit Margin In Business
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