How Productivity Impacts your Company’s Revenue

Marginalised Pricing

A business owner always has to be very careful while allocating resources to different departments, called Marginalised Pricing. Business empires are built or ruined by this strategy. When a business owner analyses his monthly revenue, he can see which department gives him returns and which is a long-run liability.

Optimum Utilisation of Resources

The Modernist School of Economics gave a concept of Optimising your resources to help your business flourish. Optimising your resources might sound like quite a lot of work, but it is easy when you are tracking your employees in each department. And if your employees are honest in their work and improve their productivity, then your human capital is optimised.

Restore The Equilibrium

Another fantastic concept given by Modern Economist states that a business should always run on equilibrium. Restoring the equilibrium means equalising the assets with liabilities and profits with expenses. However, in the 21st century restoring the equilibrium is unrealistic because of the rising inflation and the non-variable cost. But individual departments in a business can restore their equilibrium. The company will continue to function in a non-equal zone. Still, all the resources can equalise their profits and expenses, which will indirectly help the company increase its revenue.

How productivity impacts your company’s revenue

We saw all the revenue strategies that will help your company increase its revenue, but only if you noticed one thing was constant in all the four strategies: “Productivity of all the resources.” So, we come back to our question of how productivity impacts your company’s revenue, and this is how:

Profits Over Loss

Optimise Your Human Capital

Profitable Organisation Will Benefit All

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