Is Reducing The Cost An Effective Way To Make More Profits?

Good-Guy

VIP Contributor
There are many kinds of businesses and there are many kinds of businessmen. However, I believe that a person who is an expert at reducing the cost and effectively manages his business at a low budget is the one who is a talented businessman. Most of the people in this great world do not realize that cost can have a great impact on the profits. If you manage the production cost of your goods, you can effectively make more profits as production cost is correlated to the profits. Now I am not at all saying that a businessman should be stingy or a businessman should compromise on the quality of products and services. What I am trying to say is that there are many ways to reduce cost without needing to decrease the quality of your products. So, what do you have to say?
 

kayode10

VIP Contributor
It is possible to make more profit by reducing the cost of operating provided the quality of your products or services will not be affected. To do this you just have to look at some of the things that are less important to the production and eliminate them from the accounting so you make more profit.
 
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Good luck

Valued Contributor
People will always want to buy a cheap commodity to save cost.if one goods is cheaper,it will attract customers to patronize such seller but if the price is on the high side,it will discourage people from buying such products.it is good to make little profit from a product and sell quickly than trying to make big profit and the product remains there.
 
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Alexandoy

VIP Contributor
I remember the cost cutting that we exercised in the office during a slight depression (when there was scarcity of US dollar that affected our economy). Our boss had listed ways to cut on cost like electricity, water, and other items. He emphasized that if we can cut the cost of electricity by $1 then that is like we had earned a profit of $1.
 
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Haibso2003

New member
Yeah it depends though. Reducing the prices in such a way that leave it up to the price of how you said he bought it then you will run at a loss. Using however a little amount will definitely draw more customers to you and it is your strategy for attracting customers especially market women.
 
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btaliat

VIP Contributor
It is two way things. There are some people like me that always believe that price determines the quality of goods. In fact, I like shopping for expensive things because I believe they are of quality than that are of average price. In fact, apple don't even care about people' opinion before making its brand expensive
 
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Sotherefore

VIP Contributor
A lot of people are not really interested in the price of a particular products but what they are interested is what the product is willing to offer on to them ,I think maintaining the quality of your products and increasing the price is actually the best. But this depends on the type of products you are dealing on that will determine
 
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