Need help for shutter business

Discussion in 'Growing and Managing a Business' started by andunathan, Jun 29, 2011.

  1. andunathan

    andunathan
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    Hello everyone,

    I own a shutter company that provides interior and exterior shutters for house windows and doors and my business is running smoothly, but from the last few months I am facing few issues related to the cost. Due to the huge competition in the market I am unable to control the costs because we don't want to compromise with our quality and as we know that maintaining good quality products is somewhat costly. So, please can anyone suggest how do I control the costs without affecting our quality? Thanks in advance for your suggestions.
     
  2. sigma

    sigma
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    Can't give idea in details since don't really know well in your business. To reduce the cost effectively, you might try LEAN system, to control the quality, six sigma is one of the best choice. To combine both cost reduction and improve quality, you might go for LSS (lean six sigma)
     
  3. Fergal

    Fergal
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    Welcome to our Business Forum andunathan, thanks for joining and posting your business questions.

    I had a look at your website at http://www.tradeshutters.ie/ part of the answer to your question is in the video on that site. The video says your competitors import from China whilst you manufacture in Ireland. As long as you maintain that business model you will not be able to compete on price. However, the fact that your quality is better and that you manufacture in Ireland gives you a marketing advantage. Perhaps what you need to do is to focus on the higher end of the market and emphasise your product quality and the fact that your product is completely Irish made in your marketing and promotion.

    Obviously that doesn't stop you from also reducing your costs. Things you could look at include;

    • Negotiating cost reductions with your suppliers
    • Looking at your labour cots and searching for ways to reduce them
    • Look at your order books and try to determine if you are doing any loss making work that you would be better off without.

    I know that's quite broad advice, does it help at all?
     
  4. andunathan

    andunathan
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    Hi Fergal,

    Thanks for your reply and I think the ways you suggested me will be surely beneficial for me and I will go through your ideas and lets hope that it can help to resolve my issues. Thanks again.
     
  5. Fergal

    Fergal
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    Thanks for the reply andunathan and good luck with it, please do post back if you have any further questions.
     
  6. JPM

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    Why don't you get in touch with some local and maybe nationwide retailers? I would speak with estates departments in those retailers and offer discounts for future work based on repeat business. You may not like the idea of calling in this way, but if you make 100 calls and 3 say yes - it was worth it.

    If you don't want to be considered as a business that operates in this way why not produce leaflets and post business materials to some of these companies.

    Do you have a website?
     
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  7. aiyz

    aiyz
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    Successful business professionals know that controlling expenses and trimming excessive costs is crucial in creating an organization that is competitive, profitable, and growth-focused. However, it can be difficult to determine where and how to cut costs to create better efficiencies and improved operational effectiveness without sacrificing customer satisfaction or overall business results.
    By learning how to identify key processes, everyday activities, and financial practices, you will discover how costs add up and identify undetected drains on your company's budget.
     
  8. Peter Birganza

    Peter Birganza
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    Hi,
    If you feel that you have enough labor to work than why don`t you start downsizing in your company? Pick out those employees who are not working well or not enough experience to work. If you feel than deal with them that after achieving your target, you will hire them again. Also they will not go against you by adopting such a pattern for downsizing. It will be helpful for you to minimize your cost and you can make quality product at the same level that client demands.
     
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