First, control costs:
Enterprises can improve profit margins by reducing costs. For example, reduce raw materials and labor costs, optimize production processes, and save energy and resources.
Second, increase the sales price:
Enterprises can increase the profit rate by raising the price of products or services. This requires enterprises to understand the market demand and competition and determine a reasonable price level.
Third, the development of new products or services:
Enterprises can develop new products or services through continuous innovation to attract more customers and improve sales and profit margins. At the same time, new products or services can also help enterprises to expand the market and increase market share.
Fourth, the nature of profit:
The manifestation of corporate profits is the labor performance of all employees. Enterprises make profits from producing high-quality goods for the market. Compared with surplus value, profit is not only the same in quality, but also the same in quantity. The difference of profit is that surplus value is for variable capital, and profit is for all costs.
Classification and characteristics of profits:
I. Classification:
1. Economic profit: The difference between total revenue and total cost is customarily expressed as "π" (it should be noted that total cost includes opportunity cost).
2. Normal profit: part of the cost, the capital investment paid to entrepreneurs.
Second, the characteristics:
(1) A certain profitability. It is the final financial achievement of an enterprise in a certain period of time.
(2) The profit structure is basically reasonable. Profit is measured according to the principle of proportion, which is the result of subtraction of income and expenses in a certain period of time.
(3) The profit of an enterprise has a strong ability to obtain cash.
(4) The factors affecting profit are complex, and the calculation of profit includes subjective judgment, and the result may vary from person to person, which is operable.