Shall I advice not to tie the shoe strings? Trim the nails and slip your feet into soft and silky socks. "Increase profits without increasing sales" is an advice sometimes beyond easy acceptance. Let us try to learn: How to increase the comfort of the feet with out increasing the size of the shoes?

SAME VOLUME MORE PROFIT!

The sales volume is same or kept constant in view of certain management difficulties. That means you do not want to increase the sales volume unnecessarily for want of production, sales and marketing forces.

Now, the production or the commodities available for sales is limited. You want to distribute them to your standard customers. Selling is also not a difficult job. Its requirement is limited to your supply and there is no anxiety about exhausting the stocks.

INCREASE PRICE ON DEMAND:

When you want to increase profit from the same sales volume, you need to increase the price per unit. This you can do it when there is a good demand for the commodity. The demand will be more when there is less availability in the market.

DISTRIBUTE LESS TO CREATE SCARCITY:

If the production is less and the demand is more, automatically you will increase the price and the consumers will accept it. You can create a temporary scarcity by hoarding the stock for sometime if the product is essential and valued high in the market. Then make an increase and continue to market as usual to maintain the sales volume.

LABOR SAVING DEVICES:

SAVE BY MACHINERY: You can think about labor saving devices to save money in production. New machinery or tools that can bring up a fast production will be of use to reduce the cost of production.

SAVE BY CONTRACT: You can get the production done on a contact to save the increased cost of labor. The contractor will have a least cost towards the labor or will take up production on his own with his family labors. You need to supervise to maintain the original quality of the product always.

SAVE BY COMMON DISTRIBUTOR: You can think about reducing the cost of marketing. This could be achieved by giving stocks to a distributor who is already distributing similar goods and reaching your target consumers. Only your salesmen will help securing orders as usual.

PAY COMMISSION FROM SAVING: The marketing cost by your own distribution will be saved and it will be more than enough to cover the distributor's trade commission.

LOW COST PACKAGES: When you want to reduce the cost of production, you may go for suitable economic pouch packages. Care must be taken that your product maintains good luster in view of the consumers. In any way products quality and appeal should not be deterred.

CARE SATISFACTION: However, the attempt to reduce the cost of production, packaging, marketing and increase the price tag may be adopted in case of exigencies. Such efforts may not last long in giving good results. This will increase the profit per unit and the total income as well.

The principle here is "gaining more by saving than producing". Take care about consumers' satisfaction!

As a business strategist, I have observed that reducing unit price and increasing the sales volume is the best way to augment company's income.

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