Reducing expenditures
- How does this new year start?
- For the time being it starts well.
- What do you mean?
- The turnover is good.
- Why is it good?
- It’s more than it was thsi time last year.
- How much is it more in percentage?
- It 30% more.
- What could be the reason for that? What do you think?
- I think we have advertised smartlier.
- What can you sell more in this period?
- It’s strange but everything goes better.
- What are the chances for this going on?
- I don’t know.
- So, are you pessimistic?
- No, I’m not, but I have no exaggerated expectations.
- At the moment what do you think can reduce your turn-over?
- I don’t think it will reduce, but I can’t see what will help us to increase.
- OK, but what could reduce it?
- Economical factors.
- For example?
- I think of labour market. If more people can’t work or can’t earn more, they won’t buy more long-lasting goods.
- So you depend on people’s salaries?
- Yes, absolutely.
- So, you say, that in this situation there are not many advertising technics or special price-actions that would make peole buy your goods?
- There would be some, but we have to be careful. We have to keep the incomes and expenditures in balance.
- Do the special crisis taxes have effects on your prices?
- No, but I think it will, on our budget.
- From where?
- From banks, from service supplisers.
- What are you optimistic about?
- I hope people are aware of these changes and they will satisfy their needs in thsi sitiation, too. I have to trust int hat situation won’t be much worse.
- What kinds of servise suppliers did you think of?
- The first is the energy supplier, for example the gas suppliers, then the electricity suppliers and the banks.
- How much will your energy bills increase, what do you think?
- I think they will go up with 7 or 8 per cent.
- Will you try to reduce your bills?
- Yes, we will talk about the contracts with the suppliers. This is an open market and we will try to make them complete with prices.
- What are your chances?
- I think if we look at our market position, as we are large consumers, and suppliers like good payers.
- How much reduction would you be glad with?
- The best will be a no-changing situation.
- What other ways would you have to reduce bills?
- We’ll have to reduce consuming gas and electricity.
- In what ways?
- For example we can turn off the TV-walls when there are only a few customers.
- Can you apply for financial help if you want to reduce your energy consuming?
- Yes, we can, but our headquarterts is very modern, and the other places we only rent. It isn’t our job to improve those places.
- How can you reduce expenditures with investments? What kinds of investments can reduce your expenditures?
- First, our infrastructure doesn’t need to be improved with investments. We don’t plan to improve it for about 3 years. We should, but now we will postpone the refurnishment of the shops. So, to tell it briefly, we will save money with not investing into not directly profitable things.
- But tell me investments for more profit.
- For example, we will reopen a shop – it is an investment that will make profit.
- And what about transport?
- We have some own transporters but we rent (/hire) some outsiders, too.
- How is it cheaper or less expensive ?
- With own and with outsiders when it is needed. This combination is the best in every respect. When the turnover is low the own transporters are enough, but with higher turnover we hire outsiders, too.
- So, the more own transporters we have, the less profitable with changing turnover.
- That’s correct. Our transporting system is economical. We can’t make it more economical.
- How much do your prices go up with the higher fuel prices?
- Because of smaller jumps we can’t make the prices higher. But if tax of fuel goes up or the prices are high for a long time we must put it into the prices of our goods.
- When did it last happen, that you had to do this?
- Last January.
- How much didi t change then?
- It was 8 per cent.
- How do you build additional expenses into prices? Who counts it?
- We have a special expert called ’controller’, and he is the one who watches every expense and he gives us advice low we should form prices.
- How often don’t you take his advice?
- I mean, what affects your prices at different times?
- There is seasonability in this profession, too.
- Give me an example.
- For example this year doesn’t have a special occasion, so companies have a new idea.Thsi year there will be campaigns before Easter, and they will tell parents to give their children lap-tops.
- Will prices go down then?
- The average prices will be the same, but the new products will be a bit better.
- When will you start this action?
- About three weeks before Easter.
- How effective do you think it will be?
- There will be a global campaign, so I’m sure there will be a good market.
- What other markets will make profit from this?
- Its accessories, (for example) everything that are used together with PCs.
- And after Easter?
- Of course, there is always a cooling season in the market – in the fridge market and of course int he air-conditioner market, too.
BRAIN STORMING, 2010-2021
