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What strategies may we use to increase net profit when we have net losses?
- There is no one “sure win” strategy. There is also no such strategy that is bound to bring “sure losses”.
- Net losses can be the result of two situations. One, you set out with a strategy but what you do is in opposite direction of that strategy. Two, you don’t really have a strategy and you are changing directions all the time.
- For example, you decrease the price in one period and then increase the price in the next period, and then decrease the price again and increase the price again. What are you trying to do?
- For example, you keep on producing and cannot sell enough of the output because you are not marketing enough, or you don’t produce enough even though you have created the market potential with huge investment.
- For example, you spend a lot of your capital in the wrong place at the wrong time.
- A “strategy to increase net profit” is about how much you should invest in creating a certain quality, a certain production image, a certain production efficiency, and then how much you should produce to sell at what price to capitalize the market potential
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