Discounts and offers, increase in the price level generally and the rise in operating costs due to new health and safety protocols are the main threats to the profitability of companies in this new commercial reality.
Given this context of economic and health crisis, which derives from the outbreak of covid-19 at the global level, Ariel Baños, a specialist in price management and founder of Fijaciondeprecios.com, explains what are the main threats that could affect the profitability levels of companies, and details some strategies that could be applied to mitigate the adverse effects.
Convincing the sales team that the increase in the price of the product is necessary, and that they are able to convey the message to customers correctly, is essential when it comes to increasing prices when production costs rise.
Ariel Banos, specialist in price management and founder of Fijaciondeprecios.com, explains five strategies to increase product prices successfully, maintaining profitability and ensuring the viability of the company in the face of rising costs.
The Mexican Volaris announced that so far, they do not plan to execute any growth plan in Costa Rica, because operating costs in the country will rise considerably in 2020.
Managers of the low-cost airline said that the increase in fares to Juan Santamaria airport scheduled for next year will represent a 59% increase in the operation cost of the company in the country.
The CEO of the multinational confirmed that the closure of the plant did not respond to reasons of global strategy but to the high operating costs in the country.
An article in Crhoy.com reports that in a presentation for employees of the company, the executive director of Intel, Brian Krzanich said that "the decision in Costa Rica was not part of plans to reduce the company's overall payroll but 'had more to do with the cost of this operation, the long-term operational cost of the plant. We spent several years working with the Government of Costa Rica, trying to reduce the overall cost of this operation.'"
Taking time to eliminate hidden costs in business may be the best short-term investment.
In the article by Omar Becerril at Altonivel.com.mx, he highlights some of the types of expenses in which businesses often incur. Even highly efficient processes may be covering up unnecessary costs that can be avoided.
1. Cost of obsolescence:
Nothing is more detrimental to sales of products than to look old next to the competition.
español
7288
