QNet Cuts Manufacturing Costs With An Eye On Growth
Manufacturing is overlooked when discussing direct sales. Affiliates and end-user consumers look at the finished product. The images of anything coming off a production line do not appear in people’s minds because they are looking at the product from a buying or selling perspective. For the management of a direct selling company such as QNet, production is almost always on the mind. After all, if the special products are not actually manufactured, they cannot be bought or sold.
Some might argue that management of QNet simply has to accept manufacturing costs as the proverbial price of doing business. To a degree, this is true since the company does have to commit a certain amount of funds for production.
However, any business that wants to curtail costs is going to look for ways to decrease expenses. Cutting down the amount of product would do nothing. The profit margin per product would remain and, with less product produced, less profits are possible. This would be true even if scarcity raised the price of the products slightly. No, the way to save money and boost profits is to look for cheaper ways of manufacturing the products without sacrificing quality
QNet is launching a bold new plan in terms of cutting down its production costs. The Hong Kong-based company is planning on moving all of its production to India, a country know for its booming economy, low costs of operation, and skilled work force. All of those components come together and make India a far more attractive location for manufacturing than other regions in the world.
The cost margins that QNet may be able to save thanks to moving production to India are not minor ones. 8% to 10% (possibly 12%) savings on production costs are huge. The funds saved could then be put to use in other areas of business operations. Lowering the costs of the products is another benefit since this makes it easier to facilitate sales.
Better sales figures means affiliate sellers make more money. Once the word gets around that motivated sellers are making good money, more people are going to want to affiliate with QNet. The company ends up growing as a result. QNet also has an India-centric website.
QNet is definitely growing. There are offices in around 25 countries and e-commerce is conducted in many more territories than that. Perhaps after the big move to India, the company’s growth figures might increase even further.