How to make the mobile disco more profitable

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Saleem Kamal 10B                 27/04/07

How to make the mobile disco more profitable

Reduce Costs

In the Manic Mixers business, there are two costs involved. One is the variable cost and the other is the fixed cost. If the owners were to reduce the cost they would attract much more customers and benefit with more revenue.

At the moment the Manic Mixers have around three bookings be month. Each booking is charged at £85. If this price was lowered this would be another attracting factor.

Alternatively if they raised the price by around £5 they would still achieve the same goal. With the extra income, more CDs could be bought. This would make £90 value for money with the new music.

If there was a change in the variable cost it might solve the problem of the profit income the Manic Mixers are looking for. They could decide to reduce the charge on Petrol and light bulb breakages.

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This might be a disadvantage, reducing the costs, which would make the business suffer. It costs a lot to keep a business going. Reducing the variable cost for petrol they also reduce their travelling distance, losing out on customers.

When the Manic Mixers travel to a venue they might have an accident. There would be a definite inflation in the variable costs. This would not help the owners Profit margin or ease the Loan repayments.

The changes in making the mobile disco more profitable could look a bit like this.

With this plan and the ...

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