Allocating the fund is a crucial process for ebusiness because if funds are misallocated, the business might make wrong decisions to price more or less to a product or invest unnecessary resources in non-profitable product line. In order to maximize profit in our ebusiness, we find all possible way to minimize costs structure. While some fixed costs are vital to keeping the business running, we always review the all financial records to identify excessive expenses that do not provide any additional value to core business activities. The cost structure of the eHelmetz consists of several contents.
The cost structure is not always static. It has been vacillating with the customer demand. As the breakaway positing business, we mainly focused on the premium customer.
The cost was also allocated as per the requirement of the customer need and fulfills their satisfaction. Our primary focus is mainly on the safety and style of the trendy environment. These objectives can be including while allotting the budget of the core business and the primary costing parameters are as follows.Research & Development cost: The research team is continuously working on to develop the new product design and implement the technology eHelmetz as a part of the core production. The Research and development cost consists of several practices like Industrial Design, Computer-Aided Design and the software development. In order to upgrade soft ware of the e helmetzs, we still spending extra efforts and investing huge amount of funds tom reach the customer perceived value. This is generally not so easy task to all the industries but could achieve by experts forum. The overall Research and development cost is around thirty percentage of the all cost of the firm.
Manufacturing Cost: It include material cost, overhead cost, production cost, labor cost, packing cost, and equipment cost etc. The majority of the cost structure is based on the manufacturing process. It starts from procuring the raw materials with standard quality.
The fixed assets like plant, machinery were planned in the advanced manner to reduce the over head cost .Skilled labors are always the boon to the industry. Procure the skilled labor and train them in efficient way to achieve the best performance. The production can be reduced by implementing the best technologies. Regular quality audits are needed to be done to achieve the best quality products. As per the product line, there are several models of helmets are designed continuously.
The material cost and production cost are choose as accordance with product customizedInventory holding cost: The crucial part of the ecommerce business of eHelmtz is depends on the best practice of the Inventory holding cost. The best strategies are implemented in order to minimize the inventory holding cost. Estimate the demand of the customer and make the stock on accordance with the demand. By Continuous focus on the market research to better understands the consumer choice and how the demand and customer interest fluctuating with emerging models in helmet industry.Ecommerce cost: Cost of digital business is relatively posses less cost than the other physical business.
The fixed cost such as software, systems, server, big data and also training cost, implementation of ERP or SAP are reasonable not much expensive as compared to the scale of the business. In the initial stages these services can be outsourced to some extent. Once the business got expanded we can focus on the implementation to further extent. The physical distribution is common task for the any ecommerce business. By choosing the best strategy to diver the product to the end customer is also the challenging in the competitive world.
Other costs: There are several other costs which enable in the eHelmetz firm like quality assurance, sales force, market research cost, advertising cost, promotion cost and distribution cost etc.