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Clues have been there, but you need to know what the look of: Jay Golta
(Fortune Small Business) - Last month I wrote a article about Debbie? Dusen Bury (Debbie Dusenberry). She is a Kansas City,windows 7 enterprise serial, Kansas, called This store because of its superior product quality, creative rich and acclaimed. In the past eight years its income has been growing steadily. But Dusen Bury
financial data sent to her when I see, speech mixed with a trace of frustration: some worry about their own ... ... Whenever I was a little savings, would not be so anxious ... ... (we) freeze spending, cut spending as much as possible. For eight years, I first dismissed an employee. Dusen Bury financial data clearly show that one of her business has great potential,microsoft office Standard 2010 32 bit key, but it also made her trouble. The store's annual revenue has increased to more than 800,000 U.S. dollars. Her labor costs higher proportion of income, perhaps she should be fired an employee. Although the rent is reasonable, but she can go to the landlord a temporary reduction in her rent, because in this economy, any landlord do not want to lose a tenant. But the question is, what she said that eight years she has been the loss of money.
Dusen Bury said that each year she told myself to work harder, sell more products. But the hard work and business model can not compensate for the defect, will bring her long suffering. I think that this subjective interpretation of imaginary of about 70% of small businesses not to ten years to support the reasons for bankruptcy. The statistics from the U.S. Small Business Administration (the Small Business Administration).
entrepreneurs always focus on the cause they love the artist was busy painting, no time to do a market survey; cook all day soaking in the kitchen, not concerned about their financial situation. Every business owner should be the company's chief financial officer. This task to a bookkeeper or an accounting firm means that you handed over the fate of their hands. However, they often do not know the details of your company,With you I know what is concerned about, it will not be able to make critical decisions. Bury accounting
Dusen told her to cut costs, which is good, but not enough. In fact, she is moving towards bankruptcy. Her only hope is that the financial budget in 2009 to a profit. She can no longer borrow money, also must repay the debt. The problem is obvious, if she can not cut spending, how profitable it? Sell more products is also unhelpful, because the cost of sales is too high.
Believe it or not, Dusen Bury need to raise product prices. Yes, even in the current economic situation but also the case. If this sounds ridiculous, then you have to go very carefully. A simple example: for example, the sofa Bury Dusen has been a $ 1,000 purchase price, she sold $ 2,000. So what if she sold ten sofa, sales is $ 20,000, deduct the cost of $ 10,000, she can earn $ 10,000.
now assume that she will raise the price to $ 2,200, 10% price increase, but at the same time we assume that the sales price growth means reduced by 20% or sofa that she only sold eight sofa . This makes her sales dropped to $ 17,600, the product cost $ 8,000, her total profit is $ 9,600. Seems to reduce her profit, but in this case, her profit is the same, because she can save the variable costs - shipping, credit card fees still shipping these through a small sofa for sale 2 can be achieved.
but I really want to say is: Dusen Bury operating a niche in the business, a very loyal customer base. Her customers would start raising prices because she no longer patronize. I think she can sell for 9 new sofa to ensure that she can profit.
Is it possible I was wrong? Of course, possible. But the price elasticity of the rules was that I was right. If Dusen Bury continue to adhere to her usual way of operating,microsoft office 2010 Home And Student cd key, one day her company to bankruptcy. Adjust the price might bring at least a chance of survival.