CARRELLO
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di Marco Bagalini (Autore)
Companies are rethinking their pricing. Pourquoi? They don't lack pricing knowledge. They're costing specialists. Even seasoned fashion executives can't continue to price the same way in an ever-changing industry. Currently, numerous merchants reduce products virtually constantly. This has increased discounts, chargebacks, markdowns and decreased profits. Chargebacks are the percent or cash amount removed by the retailer/vendor from discounted products when the merchandise cannot be sold at full price due to receiving the product incomplete, late, or damaged, or if the consumer does not want the product. Increased chargebacks and markdowns have lowered everyone's profits.
Manufacturers and private label merchants that have been properly pricing for years are seeing declining same-store sales. Pourquoi? Overstocked stores have consumers looking for the cheapest choice. E-commerce, smartphone shopping, same-day or next-day delivery, and retail automation are transforming how customers purchase. Meanwhile, garment companies are changing how they make things. Many designs, sourcing, and production procedures are now computerized, and clothing are manufactured faster and cheaper than before. High-priced software and automated equipment improve productivity and revenue.
Profits rise with sales. Not so now. Costing is initially evaluated while analyzing the recent decline in earnings for merchants, manufacturers, and factories. Costing alone won't fix diminishing earnings in most cases. Style, fit, fabrication, timing, merchandising, manufacturing, retail locations, marketing strategies, and customer values must all be analyzed.
Businesses should prioritize their corporate cultures. If a handful of these elements are out-of-date, a firm won't be successful, despite cutting costs and pricing. Most firms start with cost sheets. Cost sheets are easier to alter than fit standards or production procedures. Every company expense must be accounted for on a cost sheet before costing.
A corporation considers at income before considering cost-per-style. The income statement reveals a company's annual, quarterly, or other financial performance. A firm looks at its gross sales or revenue first, then its net profit or loss. The bottom line decides if the company can survive the following phase. If a company's bottom line requires improvement, it can enhance its top line (by producing more sales) or lower its expenditures (by decreasing cost of goods and/or operating/or other expenses). Rising a company's top line usually means increasing marketing, manufacturing, people, or technological costs. A corporation that lowers expenses may be less productive (due to decreases in marketing, employees, and supplies), lowering its top line. Successful organizations must balance their income and costs to be profitable.
Companies must balance their cost sheets while balancing the income statement. Too low a price means no sustainable profit. Too high a price will reduce sales. Balancing expenses, earnings, and costs is like juggling while jumping in circles. Someone may shake up the atmosphere while you're doing well, forcing you to start over. Today's attire reflects this.
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