Profits dropping - not sure why

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Profits dropping - not sure why

Postby santrilla on Tue Jul 19, 2011 9:00 am

Hi all. Total noob question here.

My company has one factory running two triple-shifts of bottled milk and corn flakes, and I have a store selling 2 slots of each product with no marketing. I noticed I wasn't selling all of my produce, so I dropped store prices to shift all the stock, then left things running overnight.

Over the past year since this happened, my profits have dropped heavily. I'm sure I'm missing something, but can anyone explain why this might happen - and what I can do to reverse the process?

Appreciate your advice.
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Joined: Fri Nov 21, 2008 6:08 pm

Re: Profits dropping - not sure why

Postby wazzatron on Tue Nov 29, 2011 12:48 pm

try ditching the triple shifts because in the long run these are not worth it.

An example.

1 shift = 4700 call this 1*
2 shift = 11750 this is 2.5*
3 shift = 21150 this is 4.5*

so in your case you are paying 4.5 times as much to make only 3 products thus the products won't make as much profit as you expect they should.
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Joined: Fri Nov 25, 2011 6:42 am

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