Analytics based on Big Data allows mall operators to maximize revenues and visits by better selecting tenants, optimizing mall design, determining rents, establishing signage and advertising campaigns, etc.
New technological tools allow mall operators to measure the number of consumers spending in and out of stores, the time they spend in and out of stores, know their relative wealth index and understand visitor behavior patterns, helping to determine the best mix of stores, site infrastructure, rent price range and implement more efficient signage and advertising.
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.
Avoiding hurried discounts, managing price increases according to costs and improving cash flow are some of the strategies that companies can resort to protect their profitability in contexts of inflation and recession.
Ariel Baños, a price management specialist and founder of Fijciondeprecios.com, explains four strategies for maintaining profitability when companies face scenarios of rising prices and low dynamism in economic activity.
In Costa Rica, it is estimated that rental housing with the best rates of return can be found in Escazú, Santa Ana, Sabana, Rohrmoser and the North of Heredia.
Estimates from Colliers Internacional detail that in the case of the office warehouses, the areas close to the Airport, the Coyol in Alajuela, and the Uruca, Heredia, Valencia, Lagunilla, San Francisco and Ochomogo, are the areas with the best profitability.
Although the U.S. is the main buyer of Guatemalan coffee, data from the exporters' guild indicate that South Korea is one of the markets that pays the best prices for the grain, while Italy pays one of the lowest prices.
#Although the main buyer of Guatemalan coffee is the United States, there are indications that Asian countries tend to appreciate Guatemalan coffee more, paying a higher price for it, notes the report "Guatemalan Coffee: A Focus on the World Market and Its Productivity.
The right choice of the marketing system and the partners who will sell the product is key to compete profitably with other options with lower prices.
Ariel Baños, price management specialist and founder of Fijaciondeprecicios.com, explains how through proper marketing, it is possible to compete against the prices of companies manufacturing their products on a large scale and at lower cost, such as those made in China.
The carrot strategy is to implement the right incentives for everyone to be committed to the same goal: the culture of profitability.
Ariel Baños, price management specialist and founder of Fijciondeprecios.com, explains how through the "carrot strategy", companies can move from the "culture of volume" to the "culture of profitability."
The carrot strategy is to implement the right incentives for everyone to be committed to the same goal: the "culture of profitability". It is not an easy path, since it can mean to say "no" to certain businesses contributing volume, but end up deteriorating the final results.
Properly establishing the criteria for the application of discounts or special conditions helps to wisely manage price reductions without compromising the company's profitability.
Price management specialist and Fijciondeprecios.com founder, Ariel Baños, explains how through the "strainer strategy" discounts to customers can be managed intelligently.
Estimating how much customers would pay if they bought from a competitor and defining how the product offered differs from others are some of the strategies used to help increase sales profitability.
Ariel Banos, specialist in price management and founder of Fijaciondeprecios.com, explains how through the "umbrella strategy" companies can stop using discounts as the only selling tool.
The downward trend seen in international grain prices "raises doubts about the economic viability of coffee production."
From the Introduction of a document entitled "Assessment of the economic sustainability of coffee production", prepared by the International Coffee Organization:
Introduction Since March 2015 the ICO composite price has been consistently below the 10-year average of 137.24 US cents/lb, raising concerns about the economic viability of coffee production and putting the livelihoods of coffee producers at risk in many countries. Prolonged periods of low prices strain liquidity at the farm level, resulting in less than optimal input use during the following production cycle, negatively affecting yields and quality.
Tips to prevent promotions, discounts and special offers from leading to profitability problems.
By Ariel Banos, President and Founder of Fijaciondeprecios.com
5 Keys to implementing profitable promotions
When sales start to slow, promotions and special offers look like a great lifesaver.However, these measures do not always improve business performance.
In the last two years the country which is the Latin American champion in wind energy lost $63 million a year from purchasing wind MWh at $70 and having to resell it at $7.
EDITORIAL
We are in agreement with the need to contribute to the sustainability of human development on this planet, and the need to transform the energy matrix of countries in order to become less dependent on oil, but the balance of the cost of this transformation needs to be adequate, in order to avoid making the kind of mistakes committed by the government of Uruguay.
A healthy trade momentum contributed 40% to the rise in loans signed in 2015 in the National Financial System.
In December, the National Financial System (SFN) awarded 1971.4 million cordobas in new loans, representing one of the main uses of financial institutions. Loans were awarded in almost all economic sectors, in particular the categories commercial, agricultural and consumer credit loans.
The drop in oil prices has made clean energy less profitable, going from 30%, in previous years to 12%.
The approval of the General Electricity Law passed in Guatemala ten years ago encouraged a boom in the generation and transmission of electricity in the country, including from renewable sources. In the past five years, 28 new hydropower stations of over 5 MW were set up.
The state-run National Power and Light Company is awaiting proposals from companies which would allow the reactivation of the San Buenaventura wind farm, which for now is not a profitable project.
Right now the project is in the process of reviewing costs and it has not yet been determined whether or not to continue with the work. The National Power and Light Company (CNFL) is waiting for new financially profitable, and concrete offers which adhere to the budget of the company in order to assess whether to reactivate the project.
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