Do Business Well

With consumers spending more money on landscaping and their lawns, it is not surprising the purchase incidence of garden equipment, furniture, and decor is strong as well. Purchase incidence of garden equipment, furniture, and decorative items for the garden (i.e., garden hardware) was 42 percent in 2003, down slightly from results of 47 percent in 2001. Continue Reading »

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We’ve neglected consumer desire. That’s why consumers are taking an extended holiday in this recession. Why the Web was wiped out overnight. Why many Christmas retailers and resorts have gone into mourning.

Today’s advertising is so busy looking over its shoulder to see what analysts are saying about its company’s stock value, and what its competitors are saying in their ads, that the consumer has been left out of the loop. Continue Reading »

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Some 56 percent of U.S. households bought kitchenware and housewares in 2003, about even with the 58 percent that did the same in 2001.

A category that is often perceived as a household necessity, consumers are encouraged to buy when retailers and marketers give them a reason to replace existing kitchen accessories with the latest models that give new functionality or ease of use. Continue Reading »

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13. Eliminate unnecessary partitions

Factories and offices, particularly old ones, often have too many nooks and crannies, cubby holes and partitions. The more of these there are, the less visibility there is of personnel, stocks, machinery and production in general. Partitions and walls take up too much space.

14. Re-allocate space per department/function to save money

Work carried out by separate departments could be merged following physical re-allocation of work areas. For example, a combined despatch/goods inwards department could be less costly.

15. Dispose of obsolete items

Storing obsolete items in the stores and on the shop floor takes up costly factory and warehouse area. Continue Reading »

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1. Control the size of the establishment

Large-scale production brings certain economies with it especially in times of stability or growth, but in periods of retraction large-scale facilities can be too costly. Ensure that establishment costs are affordable for both high and low levels of activity.

2. Assess the minimum/optimum establishment size for your present activity level

Firms often work with facilities which have grown over the years as demand has developed. But are they what you really need now and for the future? Assess your ideal facilities objectively and compare them with what you have at present; you will at least have a picture of the changes you might make. Continue Reading »

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9. Strategic divisionalising of the policy

Your pricing policies are first and foremost intended to result in a profit for your company. There are several instances where an adjustment in price can achieve a particular objective, such as:

• the maintenance of present activity levels;
• to dispose of slow moving stock;
• to introduce a new product to the market;
• to deter the competition;
• to increase the sales of other products by the use of loss leaders.

You should always proceed with utmost caution and remember that the main objective is to achieve a profit for each and every item you sell. Continue Reading »

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Companies can increase profit either by cost reduction or by margin improvements. Margin improvement or improvement in the gross profit can be achieved either by increasing unit selling prices or by increasing sales volume (this includes the possibility of reducing unit selling prices in order to be more competitive and increase sales volume).

Selling prices are affected by supply, demand and cost conditions. All companies need to ensure that their pricing policy gives the best opportunity for maximising sales and profits.

1. Keep pace with inflation

The inflation rate is the percentage rate per period that prices are increasing and should provide a guideline to the level of price increases generally. Continue Reading »

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You will usually need a business license. This is a requirement of the city or county where the enterprise will be located. You will almost certainly need this license if you plan to operate out of a commercial facility such as a storefront, office building, or warehouse. You may not need a business license if you have a home-based business that provides professional services, such as a manufacturers’ representative or business consultant, or if you are part of a multilevel organization.

When you begin to research your location, you’ll see the major disparity in business climate from city to city or county to county. Some are very eager to have businesses of your type locate in their area. You may be bringing jobs for their citizens and additional tax revenues for their coffers. In these cities you may find that getting a license is a ten-minute exercise in filling out a form and paying a small (under one hundred dollars) fee. Continue Reading »

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Manufacturers, wholesalers, business-to-business service providers, and job shops can all benefit from the use of outside sales representatives. Some companies who deal with the public have the same opportunity, such as travel agents, mortgage lenders, and apartment owners.

What is an independent sales rep?

1. The term “independent representative” sounds exactly like what it is. This person works for himself. He or his company, generally referred to as a rep firm, will not be on your payroll, but will earn their money from three sources of services they may provide: Continue Reading »

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If it’s critical that you see certain customers in the booth, make appointments for this as well. Not everyone will keep these appointments since show time is hectic, but you’ll increase your chances of seeing someone if you try to schedule beforehand. Make sure you have plenty of brochures, price lists, and order forms. It’s better to take some home than to run out. There are those who believe that handing out expensive brochures at shows is a waste of money.

I tend to agree. Most attendees will take home their bag full of brochures, put it over in the corner, and never look at it again.

These same advisors claim you are better off to take names, pass out a simple, inexpensive brochure, and mail your better stuffafter the show with a well-written cover letter. Then follow up with a phone call or visit. Continue Reading »

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