It does not always come down to cost, although for a lot of consumers it seems to be that way. What people want is value, value for their money and to feel like they got an equal trade for whatever it is that they buy. If they feel like they have gotten fair and equal value for the money that they have spent they will be happy. If they feel as though they got above and beyond what was fair value and therefore feel as though they made out on the deal, then they will be extremely happy and start to tell acquaintances about their experience.
The trick is to create value for your customers without having to lower your prices. You need to make a profit, which is just running a business and customers know, but they do not want to feel like you're in charge more than you should. Thus, value creation and collection of the appropriate amount for the service or product is important.
Is there a way to increase profits without increasing the price. You have to find a way to lower the cost of what is occurring. Cost reductions can come in many forms. You can beat your suppliers and try to get lower prices, but that is not always the best way to go about it. It's about developing relationships with suppliers and if you beat them on price, then threaten to strain the relationship.
Now there are ways to make prices more attractive, maybe buy more parts, but they were released over a period of time. You do not want to tie all this room to the factory anyway. If you lose the space is a waste of money.
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Small Business
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