Cutting Down Cost: Efficiency is the King

When the cost of your product is 50 US dollars, you sell it at 70 US dollars, and then 20 US dollars will fall into your pocket, are these 20 US dollars your profit?

From the perspective of finance, 20 US dollars are your margin. However, when it comes to business, they are barely dividends.

Dividends are something that only exists when there is little competition in the market.

When more and more new competitors enter the industry, there will always be someone who may sell the product at a much lower price to occupy the market, and once much lower prices appear in this market, the competition will be fierce, and then the dividend will disappear.

True profit doesn’t simply equal to selling price minus cost.

The key to making a profit is your ability to cut costs through innovation.

There are two ways to cut costs, one is the management and the other is technology innovation.

Efficiency can be improved through management. You can use management tools to make your employees more dedicated to their jobs, thus ensuring your production process more streamlined. Also, you can optimize your production process through technology innovation. And the biggest difference between management and technology innovation is duplication. Duplicating code is hassle-free and you can just “copy” and “paste”, however, it will take months or even years to duplicate talented, skilled and experienced management personnel. In the meantime, the competitiveness for technology innovation will be stronger than that of management in the long run.

When your efficiency is increased, your cost will be cut, for example, formerly two people are needed to complete one task, but now through management or technology innovation, one person can finish all the tasks. Also when you work more efficiently, you will gain your competitive advantage, for example, you can offer 24 hours lead time while it takes 3 days for others to finish the project.

In a world of business, only those who embrace innovation and increase efficiency will be rewarded.

CFM--An internet-based service provider for overnight advertising textile printing in China

When you purchase online through our B2F (business to factory) online ordering system,

1. You can get a quote within 5 minutes;

2. You can place an order in just 3 steps;

3. You can enjoy 24 hours free artwork service;

4. You can enjoy 24 hours/365 days of printing service;

5. You can enjoy 24 hours and 48 hours fast lead time.

Comments

A Couple of Brothers: RGB VS CMYK

I guess you have probably heard thousands of times the terms RGB and CMYK in daily working, yet do you really know what they are, when to use and why? When it comes to designing for print, there is a range of things you need to consider that includes the design itself, the type of files, color mode setting, the printing capability of equipment, etc. Among these factors, the color mode acts as a bridge that connects your designs and the final result. Let’s uncover the basic logic behind color mode choice A golden rule in the printing industry is anything dealing with the web should always be in RGB and printed materials should be in CMYK. In the following, I will briefly explain the reason behind that. WHAT IS RGB & CMYK? RGB is an additive process that stands for red, green, blue.The main purpose of the RGB color model is for the sensing, representation, and display of images in computer monitors. However different devices detect or reproduce the same RGB value differently, si

Do You Really Know Core Product, Tangible Product and Extended Product?

What makes a successful salespeople? A successful sales always has confidence in himself, trusts the company he works at, and knows clearly about the product he tries to sell. When it comes to knowing the products, we don ’ t just mean the tangible product. In fact, three concepts on products that need to be clearly understood by salespeople. The first concept is the tangible product, which mainly includes the shape, size, color, appearance, packaging, etc.. The tangible product is important because it often determines the first impression of the product on customers. Nowadays, many companies try to attract customers by refurbishing the packaging or optimizing branding. If the color, packaging and branding can be tactically fused into the story of the product, then the promotion and introduction of the product can be easier. The second concept is the core product, namely the core value of the product. Unlike a tangible product that is designed to seduce customers to buy the

How to Select Effective Trade Show Displays for the Upcoming Trade Show Season

After the Christmas holiday, we will enter the trade show season. Are you start planning for the upcoming trade shows, here we will make a brief introduction of how to select effective trade show displays for the upcoming trade show season. Determine your goals: Before you start shopping for trade show displays, it's important to know what you want to accomplish at the trade show. Do you want to generate leads, showcase your products or services, or simply increase brand awareness? Understanding your goals will help you choose the right displays and features to meet your needs. For example, if your goal is to generate leads, you may want to consider displays that include a space for collecting contact information or a lead capture system. If your goal is to showcase your products or services, you may want to consider displays that include shelves or cases to display your offerings. 1. Consider your target audience: Who is your target audience at the trade show? Understanding

China Flag Makers Blog

Search This Blog