Create a 2 pages page paper that discusses product development and selling. Lecturer Product Development and Selling If I were to venture in manufacturing business, I would ensure that I produce a commodity which is relevant to my target audience and can be of great significance to them. This can be accomplished by deciding on the commodity which can be of much importance to them and can help them in several way such as solving their day to day challenges, improving their lives and making them much comfortable (Roth 373). In short, I would opt to concentrate on the production of computers. This is a commodity which is popular with very many people including individuals and corporate.
To the individuals, computers can be used for communication, type setting, graphic design, entertainment and performing of a variety of tasks depending on each individual user. These are fundamental activities which can make one be comfortable both at home and in their officers. On the other hand, computers can be used by business organizations in the automation of their services. Thus, they become able to produce organized, neat, accurate, reliable and high quality work. The use of Information Technology (IT) can be a very good idea for any business as it can be the surest way of improving its productivity.
However, in order to ensure that my commodity is sold, I will have to properly plan. By putting in place relevant strategies, I will definitely manage to sell my products to my clients and be in a position of making profit. After all, that is the major goal of my business. Besides, I will have to scan the prevailing conditions in the market so as to be privy with all the information about the level of competition in the market. I will need to know about the pricing policies of my competitors.
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This will be important in helping me to set a reasonable price which will not only be appealing to my clients, but be able to enable me to increase my profitability. Such prices should be decided based on the costs of production and the level of competition in the market. With this in mind, I will still have to ensure that I produce high quality commodities because it will be crucial in determining the success of the business. Many clients prefer commodities with high value regardless of their prices.
Thus, for my business, I would have to incur the following expenses:
Fixed Costs: furniture, equipments, rent and prices of the materials
Variable Costs: Electricity, salaries, wages, sales promotions and taxes
Break Even Analysis
Breakeven = Total Fixed Cost / (Selling Price – Variable Cost)
Total Fixed Costs =$10,000
Variable Costs =$1
Break Even= 10,000/ ($11-$1)
Break Even= $1,000
When this is done, the business will be able to make some profit. It represents a profit margin of 52%. However, because the company needs to maximize its profits, it will have to venture into a sales presentation as it will help it to bridge the gap between it and the potential and existing clients (Roth 219). Besides, additional initiatives such as reduction of the costs of production, negotiation over the fixed and variable costs and a slight increase of prices will be of much help.
Roth, Charles. Successful Sales Presentations: How to Build Them-How to Use Them. Englewood Cliffs, NJ: Prentice-Hall, 2011. Print.