Task 3: Which is the most appropriate method to increase revenue for the business you have chosen?
What is Profitability?
Source-(Edexcel GCSE Business: Introduction to small business)
Revenue= Price x Quantity sold
Total costs= Fixed costs + Variable costs
Profit= Revenue – Total costs
The business I have chosen for my controlled assessment is a business called Only Eggless. Only Eggless is situated on 400 Kenton Road and has been running for over 20 years. Only Eggless specialises in eggless cakes but also provides a range of food for celebrations such as parties and weddings. I chose Only Eggless for my controlled assessment as they were happy to answer any questions I had and are a local successful business.
In my interview with the owners …show more content…
Six of these people would return because of the delivery and this is one of Only Eggless’ USPs and nine of these people would return because of the cake shops offers egg, nut, gluten, gelatine, sugar, lactose free cakes which Only Eggless also specialises in. However the quality and design of the cakes has been chosen by the most people as the most important reason to repeat purchase at a cake shop and according to Appendix 6 (The Reviews) a lot of people have had bad looking designs and the quality of the cake is not praised by …show more content…
I then through different possibilities for this particular business and showing the advantages and disadvantages of each one my ideas. Finally I have come to the conclusion that the Loyalty card and the advertisement would be the most appropriate ways to increase sales this is my best and possibly my most profitable reference as I believe that these will cause efficient increase in sales and the revenue to the business with an extra cost at the start to start up the loyalty cards and to create and place the advertisements. I believe that this will help the business increase sales but Only Eggless should only start off with advertisements to attract attention to their business and then use the loyalty cards to try insure repeat purchases from consumers as this will lead to higher sales and almost certainly increase revenue and if it works well the
What is Profitability?
Source-(Edexcel GCSE Business: Introduction to small business)
Revenue= Price x Quantity sold
Total costs= Fixed costs + Variable costs
Profit= Revenue – Total costs
The business I have chosen for my controlled assessment is a business called Only Eggless. Only Eggless is situated on 400 Kenton Road and has been running for over 20 years. Only Eggless specialises in eggless cakes but also provides a range of food for celebrations such as parties and weddings. I chose Only Eggless for my controlled assessment as they were happy to answer any questions I had and are a local successful business.
In my interview with the owners …show more content…
Six of these people would return because of the delivery and this is one of Only Eggless’ USPs and nine of these people would return because of the cake shops offers egg, nut, gluten, gelatine, sugar, lactose free cakes which Only Eggless also specialises in. However the quality and design of the cakes has been chosen by the most people as the most important reason to repeat purchase at a cake shop and according to Appendix 6 (The Reviews) a lot of people have had bad looking designs and the quality of the cake is not praised by …show more content…
I then through different possibilities for this particular business and showing the advantages and disadvantages of each one my ideas. Finally I have come to the conclusion that the Loyalty card and the advertisement would be the most appropriate ways to increase sales this is my best and possibly my most profitable reference as I believe that these will cause efficient increase in sales and the revenue to the business with an extra cost at the start to start up the loyalty cards and to create and place the advertisements. I believe that this will help the business increase sales but Only Eggless should only start off with advertisements to attract attention to their business and then use the loyalty cards to try insure repeat purchases from consumers as this will lead to higher sales and almost certainly increase revenue and if it works well the