Break-even sales volume in physical terms. What is the break-even point and how to calculate it. Strengths and weaknesses of the break-even point model

The break-even point shows a certain amount cash which an enterprise receives as a result of its work or trademark, and at the same time it is able to cover all existing costs, namely fixed and variable.

Fixed costs do not directly depend on the quantity of products produced or services provided and include:

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• remuneration, namely management;
• rental of production space and equipment;
• property taxes;
• deductions for depreciation;
• payment to security services.

Variable costs are dependent on production process, on the volume of products produced and services provided. These include:

• payment of utilities;
• deductions for wages of full-time workers;
• costs associated with the purchase of fuel;
• purchase of basic and component materials;
• costs of purchasing raw materials.

It should be noted that if the company fully and without any problems pays off the invoices received, then it operates without losses and has the amount of funds that is called the break-even point. It can be represented in calculations as in in monetary terms, and in units of sold or produced products.

Calculation options

To find the break-even point you need to follow several steps, namely:

• collection of information on production volume, quantity products sold, the presence or absence of profits and losses;
• determining the amount of fixed and variable costs;
• calculation of the break-even point and certain safety zones;
• conclusion based on the data obtained, with the help of which you can estimate the level of sales and the optimal production volume that will ensure financial stability companies;

The analytical method involves calculating such a volume of production, the implementation of which income will cover all existing expenses, namely, profit in this case should be equal to zero. When using this method, one should take into account information on the sale of all manufactured products, that is, what was produced was sold without any leftovers.

The graphical method involves constructing a graph with two axes X and Y, on which the volume of production and revenue with variable, fixed and production costs are plotted, respectively. The point at the intersection of costs and sales revenue is called break-even.

How to calculate

Any calculations should be carried out based on the values ​​of one period of time, for example, it could be a year, half a year, quarter, month. It is also necessary to take into account the type of activity of the institution. Let us present the formulas for the break-even point for a store, enterprise and production.

An enterprise that carries out trade has more than 1000 units of product names in stock, in connection with this, in order to search for turnover at the break-even point accounting uses the formula:

Tb = (Z total / %R) * 100%.

Where, Z total – total costs

%R is the percentage of profitability, determined by the ratio of cost and unit price.

The search for a break-even point for an enterprise begins with determining profit using the formula:

P = V– Z DC – Z AC

Where, P – profit,

V – sales revenue,

Z post – fixed costs,

Z variable – variable costs.

Accordingly, revenue from the sale of services can be calculated using the following formula:

V = P + Z DC + Z AC

Since the profit at the break-even point is equal to zero, the revenue formula will be as follows:

V = Z DC + Z AC or

C * Tb = Z DC + Z AC * Tb.

From here, Tb in physical terms is calculated using the formula:

Tb = Z DC / (C – Z AC).

Where, C is the price per unit of the product.

And Tb in monetary terms:

Tb = V * Z DC / (V – Z AC).

Calculation example

The "Plyushka" store is trading company, which implements bakery products"Bread" company. Product provided in wide range more than 2000 titles. The average price for bakery goods is 44 rubles.

The company's established sales profitability rate is 52%. At the same time, fixed costs are equal to 48,000 rubles, and include rental payments in the amount of 25,000 rubles, for advertising - 5,000 rubles, and variable costs for staff salaries amount to 18,000 rubles.

Tb = (48000 / 52%)*100%,

Tb = 92307 rubles.

To determine the payback of the project (Op) of the store, you should divide Tb / C average, hence accordingly:

It follows from this that for effective and profitable work it will be enough if 2098 customers come to the store in a month to purchase bakery goods.

The calculation of the break-even point for the Khleb enterprise, which produces bakery products, is carried out on the basis of the proposed data. The average price for products is 36 rubles, variable costs per unit are 8 rubles, fixed costs are 120,900 rubles, 3,000 products are produced per month. Sales revenue is 108,000 rubles.

To calculate the break-even point of an enterprise, you must use the formula in monetary terms Tb = V * Z post / (V – Z variable):

Tb = 108000 * 120900 / (108000 – 24000),

Tb = 13057200000 / 84000,

Tb = 155443 rubles.

The 120,908 rubles received mean that the company will receive zero profit if it produces products for the calculated amount.

The break-even point for production will be calculated using the formula Tb = Z constant / (C – Z variable) in physical terms:

Tb = 120900 / (36 – 8),

Tb = 120900 / 28,

Tb = 4318 pieces.

Taking into account the data obtained, it should be concluded that the company needs to increase production to 4318 units; having reached this volume, the profit will be zero.

How to calculate the break-even point in Microsoft Excel

Complex and voluminous economic calculations should be carried out in Excel for convenience. To do this, just enter the appropriate formulas to get the result.

Schedule

Constructing a break-even chart is an integral part of the calculations. It clearly shows the efficiency of work, profit and loss.

Building a break-even point based on analytical calculations of a store, enterprise and production in Excel will look like this:

For enterprises, firms and others legal entities, calculating the break-even point is an important criterion for assessing your activities. Analytical data reflects the feasibility of doing business and possible adjustments in case of non-receipt of profit.

The essence of the calculations carried out is revealed when constructing a graph, which displays to a greater extent and clearly all the necessary information with the help of which it is possible to draw conclusions. This includes the volume of production, all existing costs, both in kind and in monetary terms.

Not only an economics specialist can understand the information presented on the graph. This is due to the fact that the area located above the break-even point always indicates a profit and vice versa. With this data, it is possible to make changes to production or service delivery policies. And also in the Microsoft Excel program, it is possible to predict future changes before translating them into reality.

The break-even point reflects the volume of production, sales of goods and services, which covers all costs of the enterprise. In an economic sense, it is an indicator of a critical situation when profits and losses are zero. This indicator is expressed in quantitative or monetary units.

The lower the break-even point of production and sales volume, the higher the solvency and financial stability of the company.

Break-even point formula in Excel

There are 2 ways to calculate the break-even point in Excel:

1. In monetary terms: (revenue * fixed costs) / (revenue – variable costs).
2. In natural units: fixed costs / (price – average variable costs).

Attention! Variable costs are taken on a per unit basis (not total).

To find breakeven, you need to know:

Fixed costs (not dependent on the production process or sales) - rent payments, taxes, wages for management personnel, leasing payments, etc.

Variable costs (depending on production volumes) - the cost of raw materials and supplies, utility bills V production premises, workers' salaries, etc.

Selling price per unit of goods.

Let's enter the data into an Excel table:

1. Find the volume of production at which the company will receive a net profit. Establish the relationship between these parameters.
2. Calculate the volume of sales of goods at which the break-even point will occur.

To solve these problems, we compile the following table with formulas:

1. Variable costs depend on the volume of products produced.
2. Total costs are the sum of variable and fixed costs.
3. Income is the product of production volume and product price.
4. Contribution margin is total revenue minus variable costs.
5. Net profit is income without fixed and variable costs production.

Let’s fill out the table and see at what output the enterprise will be “in the black.”

Starting from the 13th production release, net profit became positive. And at the break-even point it equals zero. Production volume – 12 units of goods. And the income from sales is 120,000 rubles.



How to graph the break-even point in Excel

To clearly demonstrate the economic and financial condition enterprises we will draw up a schedule:

1. Deciding on appearance graphics and click the “Select data” button.
2. For demonstration, we need the columns “Total Costs”, “Revenue”, “Net Profit”. These are the elements of the legend - “Rows”. We manually enter the “Row Name”. And in the “Values” line we make a link to the corresponding column with data.
3. The range of horizontal axis labels is “Production Volume”.

We get a graph like:

Let's change the graph (chart layout) a little.

This demonstration allows us to see that the net profit at the break-even point is indeed “zero”. And it was after the twelfth release of the product that “plus” began.

Where are such calculations needed?

The “break-even point” indicator is in demand in economic practice to solve the following problems:

1. Calculation of the optimal price for the product.
2. Calculation of the amount of costs at which the company still remains competitive.
3. Drawing up a product sales plan.
4. Finding the volume of output at which profitability will appear.
5. Analysis of the financial condition and solvency of the enterprise.
6. Finding the minimum production volume.

Ready-made calculations and templates for analyzing an enterprise’s break-even point.

One of the basic terms that any aspiring entrepreneur needs to know is what the break-even point is. Calculating it is extremely important even at the stage of business planning, since without it it is impossible to have a full view of future business and understanding required volumes production or provision of services. Let's look at how the break-even point is calculated, why it is needed and where it is used.

Table of contents:

The concept of break-even point - why you need to determine it

Overall, how economic concept, the break-even point is a situation in which the enterprise's profit is zero and total revenues correspond to total expenses. The traditional way to calculate the break-even point is to construct a graph, the horizontal axis of which represents the volume of products or services provided, and the vertical axis represents cash.

On this graph of the break-even point in the traditional format, you should draw a line of fixed costs, which is parallel to the horizontal axis, an ascending line of total expenses and an ascending line of revenue from sales of products and services. The point of intersection of the line of total expenses with the line demonstrating the income of the enterprise will be the break-even point. Accordingly, with an increase in sales volumes in comparison with the break-even point position, the company will make a profit, and if they decrease, it will suffer losses.

Important fact

In English economic theory, the break-even point is called BEP (break-even point), total expenses– TC (total cost), total revenue – TR (total revenue). In subsequent formulas and calculations, traditional English terminology will be used.

Not every modern entrepreneur is aware of the need to know the break-even point of a business. Many of Russian businessmen do not have an economic education and do not even take into account such basic details that are important when opening and running own business. Perhaps this is why the percentage of failed enterprises and closing organizations in Russia exceeds the world average.

At the same time, knowledge of the basic terms and principles of economic theory will not require any additional skills or abilities, since you can easily calculate the break-even point and build a graph in a few minutes. In general, the answer to the question “why do you need a break-even point” could be as follows:

• To determine the feasibility of a particular project as a whole. For example, in some cases, the break-even point may ultimately be completely unattainable given the existing production capabilities or volumes of services provided.
• BEP as an indicator can be used if regularly re-evaluated to identify management problems. economic activity enterprises as a whole.
• Drawing up a break-even chart will allow you to visually evaluate and calculate changes in profit and the possible price of a product when sales volumes change, and vice versa - to understand how a decrease or increase in sales volumes can affect the business.
• Determining possible critical modes at the enterprise and using the break-even point as one of the markers or indicators of a crisis situation.

Please note

Almost always, the break-even point is a general, simplified indicator and does not always correspond to reality upon closer examination. However, this indicator makes it possible to evaluate the business, its condition and prospects as a whole, providing the basis for a subsequent deeper assessment, if there is a need for it.

How to calculate the break-even point - formulas, calculation procedure

Before starting to calculate the break-even point, it is necessary to determine all the factors and indicators that will be used in such calculations. Thus, at least the following indicators will be used in the calculations:

• FC (fixed cost) – fixed costs not related to production volumes. These include rental deductions, some types of taxes and fees, fees for public utilities(partially), employee salaries (also not in all situations), and so on.
• AVC (average variable cost) – variable costs. Such costs include the direct costs of producing one unit of product or providing one specific service. These may include partial compensation of employees, the cost of raw materials and related costs, taxes and other similar expenses.
• P (price) – the price of the final product in the form of a good or service that will be paid by the consumer.

In physical terms, the calculation of the break-even point looks like as follows:

BEP = F.C. ( P - AVC )

The break-even point in such a calculation formula will demonstrate the required minimum quantity of products that the company needs to produce in order to reach the profit margin. Another method and way of calculating the break-even point is to determine it in monetary terms. In such a situation, the break-even formula will look like this:

BEP = F.C. /( C / P )

In this case, the indicator C means the profit from the sale of one unit of product from which the total costs of its production are subtracted. The fixed costs in the formula are ultimately divided by the contribution margin ratio, which allows us to determine the break-even point as the total amount of revenue required to avoid losses when there is no profit.

Advantages and disadvantages of the break-even point as an economic tool

The break-even point is a very convenient and, most importantly, simple economic tool that allows anyone to analyze a business, including those who do not have any economic education.

At the same time this tool allows you to draw up models of future business that are close to reality, adjust sales plans and costs of the enterprise. However, it also has a number of disadvantages. In particular, these include:

• Failure to take into account the real dependence of fixed costs on changes in production volumes;
• Ignoring changes in the cost of an individual unit of production depending on the volume of its production;
• Lack of flexibility and consideration of possible changes in product costs within one schedule.

Of course, these shortcomings can be partially offset by the development and construction of more complex graphical interpretations of the break-even point. However, the need to carry out complex additional calculations ultimately makes such a method inaccessible to most ordinary entrepreneurs without an economic education. Therefore, the break-even point in activities and in its analysis should be used only as one of the tools for control and verification, and not rely entirely on the application of such knowledge and its absolute correspondence to reality.

The main goal of any business is to make money. Therefore, before launching a new business, an entrepreneur must complete the correct break-even point calculation . This point shows at what point in time the business will cover all kinds of losses, finally starting to generate real profits. In essence, this is a common calculation of enterprise efficiency. Correctly finding this point will show businessmen and investors how profitable it is to engage in a project, what risks there are and when the investment will pay off. Based on this data, the final decision will be made.

What is the break-even point

The break-even point is the volume of services provided or sales at which the profit is zero. In English, this concept sounds like Break evenpoint, or simply BEP for short. From the economics course we know that profit is the difference between TotalRevenu (income) and TotalCost (expenses). BEP is usually measured in monetary or physical terms. By calculating this indicator, you can understand how many services or goods you need to sell to break even. If sales are lower, you will work at a loss; if sales are higher, you will make a profit.

TB is an important indicator for an enterprise. According to it, you can determine how efficiently the company operates, whether it is stable in the market and spends money. If the BEP indicator grows, then you should pay attention to cost optimization (in the absence of changes in the company structure). The break-even point may change with expansion or contraction, with price changes, the opening of new trade relations, etc. But be that as it may, BEP is one of key indicators business - it is by this that the prospects of work and investment are determined.

Knowing TB, you can decide for yourself:

1. Does it make sense to invest in the enterprise and will it really be able to sell enough goods to break even?
2. Determine the efficiency of work after some time (ideally, TB should remain the same as it was).
3. Determine the cost of production. It may make sense to change the quantity of goods produced when production falls and vice versa.
4. Attract investors from outside by showing them effective business plans, based on market research and BEP indicators.

How to calculate

So, we understand the concept of TB. Now let's figure it out how to calculate break-even point . To do this, you need to analyze your enterprise. Determine which costs are fixed (rent, utilities, wages, taxes, equipment depreciation) and which are variable (raw materials, bonuses, expansion, unexpected purchases, components).

Please note:fixed costs are virtually constant. You cannot refuse them in any way, although you can make a delay in payments (for example, agree to postpone the rent).

Fixed costs change only when something global happens: you open a new workshop, you get a raise rent, tax or labor legislation, there is a serious depreciation of money (inflation).

Correct calculation of the break-even point will allow you to detailed analysis enterprises

Variable costs mainly depend directly on the volume of production and sales. They change with the market. For example, an order has been received that exceeds your normal production volume by 50% - you will have to purchase more raw materials, machines and people will work in 2 shifts, so you will have to pay more for utilities and pay bonuses.

Here it should be taken into account that variable costs remain in the same place when production volume changes, that is, they are considered conditionally constant, and break-even point shows , how quickly you will reach zero.

Calculation principle

The point can be found in two different ways:

1. In terms of value.
2. In kind.

Let's figure out how to correctly calculate TB using the second method, since it is more common. To do this, you need to define several indicators:

• FC is the amount of fixed costs;
• P is the cost of one unit of service or product;
• AVC is the amount of variable costs.

Once the data is received, you can easily calculate the BEP using the formula BEP=FC/(P-AVC).

The profitability threshold, or break-even point, is the volume of products/services sold, upon reaching which the company covers all its expenses, but does not yet have a profit. Using this indicator, you can calculate whether the chosen methods of production growth are suitable for the enterprise and how sustainable the course of development is.

The last parameter allows you to record the moment of financial stability, that is, when the sales volume exceeds the minimum profitability. Next, the term “break-even point” and methods for calculating it will be discussed in detail.

What is the break-even point

The break-even point is the volume of sold products/services at which the resulting profit (not to be confused with income) changes from a negative value to zero.

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Profit is calculated by deducting all expenses from the company's income. There are two types of break-even point:

• in kind;
• in monetary terms.

The break-even point is determined to establish the quantity of products/services with the sale of which income and expenses will become equal. Naturally, this applies to a situation where initially expenses were greater than income. As a result, after exceeding the break-even point, the business becomes profitable. In contrast to this state, the business operates in the negative until the equilibrium ratio has not yet been achieved in the company.

The break-even point shows how stable the company's financial position is. And if this value grows, then this is a sign that the company has difficulties in generating income.

At the same time, the break-even point is not fixed; its data changes in relation to the growth of the enterprise. And its value is influenced by many factors - growth in trade turnover, opening of new branches, changes in pricing, etc.

The break-even point, in turn, affects a number of positions in the company.

1. If this indicator is calculated correctly, it can be seen whether it is reasonable to invest in the project given the current state of finances.
2. This parameter identifies problems in the company that affect changes in its value.
3. When establishing the break-even point and the volume of sales required by the company, it becomes clear how much it is necessary to increase or decrease the quantity of products sold, the scale of production, subject to a revision of their cost. In the opposite situation, it is possible, on the contrary, to identify the impact of changes in production volume on price formation.
4. The break-even point shows to what minimum limit the company's profit can be reduced, but at the same time still maintain positive work, without losses.

A graph that allows you to clearly see the appearance of the break-even point

Expert opinion

Correct 6 mistakes that prevent your company from increasing profits by the end of the year

Oleg Braginsky,

founder of the School of Troubleshooters, director of the Braginsky Bureau

After half the year has passed, interim results are usually summed up and an analysis of the company’s work, its achievements and failures is carried out. We must remember that there are still six months for profits to grow and, at the end of the year, to be profitable. But there are some mistakes or incorrect actions that can prevent this from happening. The main ones can be seen in the checklist (see appendix), and the 6 main mistakes are as follows.

Mistake 1. Annoying monotonous actions.

A company can constantly do the same things - find customers only through the sales funnel, not listen to customers to create a more customer-friendly atmosphere, continue to interact with consumers through different channels instead of creating a unified one. At the same time, all departments are separated, each working on its own - advertising, service, and sales.

For example, in the middle of winter, a buyer came to one of the agricultural holdings on the b2b market to purchase fertilizer. The head of the enterprise, in the process of communicating with a client, who turned out to be the director of a state farm, learned that the latter got to the holding’s website thanks to the Internet. He made the purchase, and after that the marketing specialists of the agricultural holding began to attack him regularly, sending emails and communications over the network and offering tools, fertilizers, or seedlings. The client did not like this, it caused irritation, since unnecessary goods were offered, and fertilizers were offered at the wrong time. Marketers had to take into account the information received from customers, make advertising targeted and retain this customer.

Clients do not like it when the same identical actions are performed against them with enviable regularity. To prevent this from happening to you, over the next six months, actively communicate with customers at all stages of cooperation. Otherwise, your customers will go to your competitors.

A good solution would be to use Client Journey Map (CJM). McKinsey claims that B2B firms using CJM experience a 10% increase in profits. CJM helps to look at the process through the eyes of the buyer, to outline and apply the customer experience. To do this, perform the following analysis:

• marketing channels that the client used when he first contacted your company;
• what exactly the person liked about the site;
• what the customer asked you before making a purchase;
• what products, services, what promotions are of interest to the client;
• what did not suit the customer during the purchase, what objections did you encounter.

Client Journey Map translated from English is called a client journey map and is a technology in the field of marketing that allows you to make working with consumers as simple as possible, increase their loyalty to the company, and help them interact with your company.

To obtain the data necessary to implement all of the above, your employees must constantly note all the moments and processes of a client’s contact with the company. To do this you should install CRM system, set up a website and all communication technologies:

• record all information about clients that is available;
• write down in the scripts the questions that the sales employee should ask first-time applicants;
• combine data about what steps a customer takes on your website with the actions of salespeople working with customers coming from the sales funnel.

This way, you can see the user's journey from their first visit to making a purchase. It is worth breaking down customers into sectors depending on how similar their behavior is. And for each group, draw up a map, best in the form of a diagram or graph, which will show all the moments of contact between customers and your company and their response actions. In the future, the information obtained can be used for clients with similar behavior.

This method will allow you to combine the efforts of different departments of your company, because with the joint activities of the marketing and sales departments and their use of complete information, the results of work will only improve.

Mistake 2. Insufficient detail in the buyer persona.

Customers in companies are usually divided into existing, former and new. But more detailed differentiation is not carried out, plus this principle will not apply to sellers, but in vain. Consumer behavior differs not only according to the specified criteria, but also depending on the region in which they live, on which manager they communicate with, and at what stage of the purchase they are at. And the same criteria apply to sellers. Taking these nuances into account will help maintain customer loyalty and improve service.

To solve this problem, it is worth starting from the scope of your company’s activities and its mission. When setting a goal to increase sales in certain territories, it is advisable to detail the list of clients according to the following parameters:

• their location;
• what kind of purchases they make in this area;
• Which sellers are they most willing to contact and make purchases with?

This will make it clear what the client looks like in a particular region. And based on this portrait, potential buyers can be offered exactly the products that are most likely to interest them. At the same time, it is worth assigning to the client exactly the manager whom he sympathizes with, because this will help increase sales. In this case, the client will see that you have high-quality service and that he is valued in your company.

If the company’s current goal is to improve the work of sales managers, then the following approach can be used. Specialists should be divided into groups. For example, some of them do a better job with male customers, while others do a better job with female customers. To organize the work, incoming calls must be addressed to the administrator, who will distribute them to the most suitable sellers depending on the gender of consumers.

Taking into account exactly this information allows you to retain customers and increase sales. Therefore, it is necessary to analyze data on the behavior of buyers and sellers and choose the right managers to work with a particular customer.

Mistake 3. Not being interested in the opinions of customers.

When creating new types of products/services, a company usually focuses on its own views, and not on the wishes of customers or their needs.

That is, in most cases, no one asks clients for their opinions or listens to the feedback they voice. As a result, the company produces products that are not in demand and are inconvenient for customers. It is imperative to listen to the wishes of large clients. Let there be at least one full meeting with your most important customers.

A solution might be to invite your highest-earning clients to a meeting of sorts at least once a year. If this year you have not yet collected the opinions and feedback of your customers for analysis, then do it as quickly as possible. As an option, you should organize a business weekend at a hotel in the city or with a trip somewhere, have a buffet and discuss your products and services with guests, ask them to evaluate your company’s service, business development, find out their opinion about the products that you are planning release. At such a meeting you will be able to find out the following information:

• what improvements the company needs;
• what changes to make in goods being prepared for release;
• how necessary are the products already on the market, etc.

You can get this information during regular customer surveys, but the fact is that large customers like to feel appreciated and receive attention. Therefore, it is easier to achieve maximum loyalty from them by showing that their opinion as experts is important to you.

Mistake 4: Retaining customers who are no longer valuable.

Often in times of crisis, companies strive to retain any customers, despite the fact that they do not make a profit. Or, on the contrary, they are trying to attract new customers without trying to retain the old ones. However, the flow of customers requires constant attention on your part. It is worth starting to work according to the following scheme - leave profitable clients, and if they are gone, then return them and delete unnecessary ones. Before the end of the year, you need to edit your customer base according to this principle.

The solution is to retain those consumers who regularly buy your products, who have a loyal attitude towards your company and who advocate for your brand. The customer base should be divided into parts, highlighting the amount of the check, the frequency of purchases made, the presence of debt or its absence to your company.

It is worth stopping to retain those customers whose check amount and, therefore, the margin are insignificant, even if they make purchases frequently, or those who contact you very rarely. To do this, you can change the sales conditions to be more profitable for the company. For example, increase the average purchase amount. Or change the minimum order conditions from one product to several. Loyal customers will accept these conditions, and the rest will drop out.

But if you see that customers are leaving large quantities or that you have lost your best clients, then the situation needs to be analyzed. It’s worth calling buyers from the b2b sector to find out the reasons for their dissatisfaction. If it suddenly turns out that your best clients are now working with a competitor, ask why they left and what you are missing. This question can be asked directly to customers, or you can purchase a competitor’s product for comparison. The b2b sphere allows you to return lost customers using Internet tools - mailings email, organizing surveys, notifications about discounts and promotions, etc. You just need to focus on attracting buyers who can bring profit and not be useless.

Mistake 5. Linking managers to clients.

Managers in the b2b industry usually work with their own client base. At the same time, customers do not like it when the seller changes. And managers act according to an already established scheme, often forgetting to offer new services or products. That is, you pay them for simply serving a regular customer.

To solve this problem, you can analyze the work of sellers over the past six months. And if it is clear that the client is buying the same thing and for the same amount as always, then assign another manager to him. Or you can motivate your employees by linking receipt cash bonus to the results of the work. In this case, understanding that his remuneration depends on the amount spent by the buyer and on the quantity of goods sold, the manager will make every effort.

Mistake 6: Content is unattractive to readers.

Today, many companies use social media - blogs, networks, and start their own channel on YouTube. But at the same time, the content posted by marketers is boring and uninteresting - ordinary reports, dry articles, speeches of directors, etc. That is social media are used formally, without the goal of attracting customers.

To solve this problem, you need to create interesting and non-standard content in order to get noticed. In this case, you must adhere to three rules.

• Management should not appear on social networks. Subscribers already subconsciously associate a speech or article from the director with boring content. And they need interesting and lively material to forward to their friends. Therefore, the best content would be to post photos, entertaining and educational information.
• Present your company's products or services in a unique way, from an interesting angle. You can show the production process or some unusual approach to the use of products. It is best to come up with at least ten such ways.
• Hire actors to produce interesting video content. Although it is more expensive, the result is worth it. Actors will be able to talk more convincingly about a company or product than ordinary employees; they will be able to convey to the audience the emotions of owning the products. Plus, such content will not only be educational, but also entertaining; it will be constantly “liked” and “shared,” especially by fans of the actors and their subscribers.