ACUTAL PRODUCT COST ? YOU SHOULD KNOW

I am writting this blog related to Marketing person who is in purchase department . Every director of the company / ceo should read this article . it’s can be important for you . I will explain in this article .

Examples :- if a customer buy a product approx 1000 kg @ 50/ kg

Assume ,cartage will be applied Rs 1000 one place to another . It,s simple cost of material will be 51/kg . Two situation will be created :-

1) customer said to vendor for send a material in a two parts

2) supplier send a material to customer in two parts

In the first case , customer will face two cartage applied on the bills because of part material received it’s means that cost of the material will be increase 52/kg . This will be applied same as in second case .

I have given you a simple example .But this situation can be change as per your requirement and Go to high product cost .

Please insure your quantity you to want buy from a vendor and get the material at one time . This will reduce your cost .

You will asked a one question to me . I know the cartage will increase the cost but I want to say that many Director /CEO of the company don’t 9know , Material comes in part or not beacuse of busy schedules , meeting etc .

Emplyees not take care of cost of product . His responsibility is to buy a product on a actual rate . He can not underestimate the power of caratges and expenses . This can be main cause of increase product cost .

Every Directors /CEO of the company should know the actual cost of each and every product buy from marketing head . This will increase your revenue very high .

I think this article will help you for implement a business

Thanks

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