It is getting much tougher to compete in the global marketplace that we all dwell in. Whether you are building baseball bats or widgets, there is someone out there trying to build them cheaper and faster than you. But the question is if they are making a better product? For some buyers, it doesn’t matter, cheaper is better even if the product doesn’t last as long. It is weird and unfortunate, but cheaper has become the catchphrase and the word of choice for many buyers and businesses. Yes, cheaper is better, but less expensive doesn’t always work out for the best. So the object is to make a first-rate, high value part and to make it of high value to your clients. The makers of the product do not decide what they makes’ worth; the customer does. What is the buyer prepared to pay for your item and how big of a demand for your part is there? There are different ways to raise your revenue for your goods.
You can always increase the price and pass it off to the buyer. But there is a better way, a more long term approach that can raise revenue and keep your business working lean and efficient. It all starts with removing unnecessary waste in all parts of your company. Waste comes in many forms and it costs every business more revenue than they would care to confess. Waste is when employees are just hanging around, but that does not mean that there aren’t orders to be built. It might just mean that they are waiting for parts to be completed in the electrical department or it could mean that they are waiting for product from a supplier. These are process problems that can directly influence the end product and how many you can make. When employees are sitting around, unused and waiting for the work to come to their work station, they are not productive. They are idle and are in effect simply wasting money and time. It is the same when you have machines standing quiet. What is the point of having a costly automatic machine if it is not in use for hours a day? Would it be more cost effective to do the job by hand, sell the machine and purchase a piece of equipment that will be more industrious? What about the room that the machine is filling, could another work area be put there and more jobs actually be completed without the machine? You can’t say that you don’t want to do away with equipment because you might want it. If you are not using it or it is outdated, then it is taking up valuable space and not contributing to the growth and profit of the company. It can be tricky to admit that buying that machine was a bad idea, but if it doesn’t work and doesn’t assit grow the company, then it is time to move forward and discover something that does. It is called adapting and moving ahead.