Exploring the profit growth of the plush toy industry

This topic should be the topic of most interest to friends in plush toys. A company's survival and development are inseparable from the product's profits. Therefore, for many years, the profit growth point has been the focus of most concern for the plush toy industry and is also the highest level for friends who are doing business management. The acquisition of profits is the only means and basis for business survival. Enterprises with zero profits will not only fail to develop, but even survive.

In recent years, due to the sluggish market, there are still a lot of zero-profit companies, and the plush toy manufacturers are even dying. This is not only a crisis for the company itself, but also a crime for society. After all, these lingering companies still have a group of more or less dozens of workers. Once the crisis comes, the workers who survive will lose their lives. Isn't this a crime against society? !

This topic should be developed from the two concepts of profit and profit growth.

Let's talk about profit, profit composition, is the sum of product materials, plus the factory cost of producing a product to produce wages. Remember: It is the factory cost, followed by a certain proportion of the factory cost, the plush toy industry's additional proportion is about 40%, and the price is the factory sales price. This 40% additional value includes the operation management fee, capital occupation interest, office fee, taxation, etc. These remaining expenses are the real profits after tax. As can be seen from the above description of the profit constituents, the first is to control the cost of the factory. When a stuffed toy order is operated, these costs are the basis for the quote, and an additional 40% constitutes the basis for the total sales price. If the factory cost price for your order is 60 yuan, and the additional 40% is 24 yuan, the sales price is 84 yuan, of which 24 yuan is gross profit. If, due to the material purchase price factor, the increase in loss factors and the increase in production wages, exceed the budget, that is, more than 60 yuan, it is undoubtedly a squeeze on profits. There are many factors beyond this, and the only explanation is due to improper management. The market, or your guests, will not increase the sales price for you because you exceed the cost, it is a dream. The consequences of this excess are only your own. Judging from many years of experience, the cost of production exceeds 10%, and your basic profit will be lost. That is, zero-profit production.

To sum up the above, you should feel that "management promotes efficiency" is not a slogan. It must be implemented in every day, every step and everybody.

Now talk about profit growth. The above-mentioned concept of profit has been clarified, and material costs and production wages constitute the factory cost price. Adding 40% to the cost price constitutes the selling price of the product. Take a regular plush teddy bear as an example. Its function is simple, playing and setting. If a sounder is added to the body of this plush teddy bear, it becomes a functional plush toy. A button switch is placed on the palm of this plush teddy bear, a sound box is placed in the stomach, and there is an IC chip that can burn all kinds of children's favorite music for about 30 seconds. With the push of a button, 90 decibels of music are played softly, and this is not to increase the buyer's desire to a greater extent. Let's calculate according to the cost calculation above. The original product factory cost price is 60 yuan for materials and wages. 24 yuan gross profit, sales price is 84 yuan. This added value is 40%. Increased the sounder 10 yuan (including installation salary), the factory cost price is increased to 70 yuan, or an additional 40%, that is 28 yuan gross profit. This is an intangible increase of 4 yuan, about 4.1% of the total value. If the total sales value of 10 million a year, then increase the net profit of 41 million Yeah.

In summary, the first step for a company to survive in the future is to control costs and ensure that calculated profits become substantial figures. The second part is to continuously develop and improve product functions and increase the added value of products. With profits, anything can be done.

Plush toys, like all manufacturing industries, put management into practice to implement the benefits, use their brains to develop new functions, and even introduce new foreign technologies. Nowadays, the IC chip technology of electronic products is very developed, and it is entirely possible to learn from the organic collection of plush toys and to develop a national and even international market and gain greater profits.

With this kind of thinking, I have quite a lot of experience and I am very interested in participating in economic discussions.

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