Which is the most appropriate method to increase revenue for the business you have chosen? (Task 3)
The business
My business, Diamond Kebab what’s to provide the customers with good food at a reasonable price and provide good service, so that customers are able to trust the business because of their consistent good quality and price. The purpose of the business is to make profit and also to make like a restaurant so that it will attract different types of customers, also they want more shops in different areas so that people that live far are able to go to closer shops.
Revenue
The definition of revenue is the income generated from sale of goods or services, or any other use of capital or assets, associated with the main operations of an organization before any costs or expenses are deducted. I got this from business dictionary. To work out revenue you do quantity sold x selling price
Importance of revenue
An increase in revenue could mean an increase in profit, however if revenue increases, expenses will also increase and so the percentage change in profit will not shift as much as one might think. Also increase in revenue could also lead to more investments back into the business, for example to buy new technology, staff training, extending a department etc.

The strategies that will help to increase Diamond Kebabs revenue is: Advertising price reduction, price increase, free gifts, bogof (buy one get one free), and product range.

Advertising price reduction will help improve Diamond Kebabs revenue, because if they cut the cost of advertising, it will lead to more money available for the business, which will improve their revenue. On the other hand, advertising price reduction could also resort in less customers being aware of the business, which could lead to less money for the business which could lessen Diamond Kebabs revenue.

Increasing the prices means you’ll collect more revenue from every purchase a customer makes. Assuming your volume, average transaction size, and frequency stay the same, raising your prices will bring in more revenue for the same amount of effort. But however increasing the price might lead to less customers coming as the prices higher, so customers might put off, also it could lead to less revenue.

Free gifts could work so well, because, first, people who test your product risk-free might recognize its value and continue purchasing what you offer, which will lead to an increase of revenue. However, people might just take the free gift and buy nothing which is time consuming for the the business, so it could be a waste of time and money, which could decrease revenue.
Bogof (buy one get one free) could help to increase revenue is used by retailers to boost their sales. This is used very effectively. For example, many times customers will not need a certain item but after seeing buy one, get one free deals they will decide to purchase it because they believe it is good value. This way customers end up purchasing products which they did not need or have the intention of buying in the first place, but customers might need the second product, which could make the scheme pointless and could cost money, which could lead to less revenue.
Product range could increase revenue because having different types of product could attract more customers, which could lead to repeat purchase, which would resort in an increase in revenue. But on the other hand, it might could cost money to sell different types of products if it isn’t successful it could lessen the revenue of Diamond Kebab.

The pie chart above shows the effectiveness of the methods to increase revenue for Diamond kebab. The pie chart is showing that advertising price reduction is the most effective, this is because Diamond kebab used to use leaflets as way to get more customers. They spent £200 every month for these leaflets, but now they spend £100 which saves them £100. This will lead to them being able to make improvements to the shop or giving the staff more money, which will lead to them working harder. Perhaps this will resort in an increase of revenue. Also in the pie chart if you notice there isn’t a percentage for free gifts, this is because free gifts don’t help Diamond kebab because customers will only come for the free gifts and not for the food, which is time consuming and could lessen the revenue of their business.

(I had got this image from yell.com)

Another way Diamond Kebab do to increase revenue is that they open till late everyday, so that more customers can come, which will lead to more money, which resort in an increase of revenue. Another thing is that they close until 5am on Saturday, this is because on a Saturday most people go out till late and they might be hungry, so they will go Diamond Kebab, which lead to an increase pf revenue. On the other hand, working late nights could be very tiring for the employees, so they might not put full effort in to their job which might lead to fewer customers, which will resort in less revenue.

How the business could reduce its cost to increase revenue? Diamond kebab could get cheaper raw materials, like the meat and chips etc. This will save their business a lot of money for the business, which will lead to an increase in revenue. But however buying cheaper raw materials might lead to poor quality, which will lead less customers and resort in less revenue.

Another thing Diamond Kebab could do is evaluate there staffing costs, they have 7 staffs. Their workforce could represent the greatest fixed cost of there business, so they have to ensure that each employee is delivering real value in their position. If they feel like that he isn’t putting not enough work into his job, they should cut the down their salary, which might lead to more money for the business and resort in an increase in revenue. On the other hand, reducing an employee salary can lead to them leaving the business, which might lead Diamond kebab needing another employee, which will cost money as they will have to advertise the job and also train the employee and this will resort in less money in the business, which lead to a decrease in revenue.

Diamond Kebab could also replace just one old light bulb with an energy saving recommended one can reduce lighting costs by up to £78 over the lifetime of the bulb and they last up to 12 times longer than ordinary light bulbs. This will lead to a less electricity bill, which lead to more money for the business and resort in an increase in revenue. However, an energy saving bulb is cheap, so it might have bad quality meaning it might break easily, which might lead to Diamond kebab buying so much of them, which might lead to less money in business and resort in less revenue.

Customer views
In the next area of ensuring there increasing revenue is through making the customers experience the best it could be, from the moment the customers enter talks and the moment they leave. Having good customer service will lead to an increase to revenue because if the workers are friendly they customers are most likely to return, which is repeat purchase, which leads to more sales and resort in more revenue. I had done my secondary research and searched reviews on google reviews for Diamond kebab and you could see the results from this pie chart below.

If you notice, that all of the 11 people that rated, gave it 5 stars. This is highlighting that the customers love the shop, which could lead to repeat purchases, which will resort in an increase of revenue, but however this only 11 people who rated if you was to ask 250 people to rate it, I think the rating will changed, which shows that it doesn’t really show if all the customers like shop so we wouldn’t know the bad things about the business, so we wouldn’t know what to improve in the business, so that we could increase the revenue.

Also, I had gone to Diamonds kebab shop and had asked 6 customers if they go to the shop for price or quality and this bar chart shows their results.

The chart shows that 4 out of the 6 people said they go for the price, whereas only 2 people go there because of quality. This is because Diamond kebab location is not in an area where people earn a high income, so the business knows if they were to have high prices, they wouldn’t receive many sales, which will lead to no money coming to the business, which will resort in less revenue. So, majority of the customers go to the shop because of its low price, but some of them go for the quality, which shows that Diamond kebab food quality is good, which could lead to repeat purchase and resort in an increase of revenue, but however it was only 2 people that said it, which shows that Diamond kebab customers come because of the low price.
Evaluation
I think good customer service is the best method to increase revenue, because from the research I have done is that customer If you can satisfy the needs of your prospects, they will become customers and that will lead to revenue improvement. If you satisfy the needs of your existing customers, they will continue to purchase your products and services, which is called repeat purchase, which will result in increasing your revenue. Finally, you must be able to operate efficiently so that the revenues being generated are greater than your costs of doing business.
Also I had asked 10 customers if the customer service was good or bad or alright. You can see the results from this pie chart below.

As you can see from above that none of the customer believe that they have bad customer service. 2 of them said they were alright, 4 of them said that they were good and the other 4 said that they were very good. If some customers believe that they have good customer service it will lead to repeat purchase and result in an increase in revenue, but however this is just only 10 people, it isn’t a lot of people, so it doesn’t really show any results that Diamond have good customer service. Another thing is that the customers who said that they have good or very good customer service said they are willing to pay a higher price for the same product, this shows that because of their good customer service, they are willing to pay more, which will lead to an increase in their revenue.

Another method thing is to decrease the prices, because if you lower the prices it will make more customers purchase more things and also it could lead to repeat purchase, which will result in an increase in revenue. I went to Diamond Kebabs competitors which is Doner Sandwiches and checked the prices for the Doner wraps and got this result. | Doner wrap (Small) | Doner wrap (Large) | Diamond kebab | £4.00 | £5.00 | Doner sandwiches | £4.20 | £5.20 |

If you see above Diamond kebab is cheaper than Doner sandwiches by 20p. I think Diamond Kebab should reduce both prices by 20p so it will become this. | Doner wrap (Small) | Doner wrap (Large) | Diamond Kebab | £3.80 | £4.80 | Doner sandwiches | £4.20 | £5.20 |

Now the table shows that its 40p cheaper than their competitors. If customers went to both shops they will most likely purchase at Diamond Kebab, as they are cheaper and they look cheaper, also they might take Doner Sandwiches customers, which will generate more sales, and result in an increase in revenue. On the other hand, making it cheaper, might lead to the customers thinking that it is cheap quality and can resort in them not buying it, which will lead les revenue

Consideration
I believe that my weakness in my research is that I wasn’t able to give Diamond Kebabs revenue and how much they actually make every month and they didn’t want to tell me their inflows and outflows, which will help make my choice of method to increase revenue much easier, as I know their revenue.
I will recommend for my work to improve in the future is to make every detail clear, so that the reader know what I am talking about, also to know the advantages and disadvantages so that I am able to give balance views and also to always give my opinion at the end.