The organic nature of the products that the company offers all seems to have a detrimental effect on profitability. Kudler may have to eliminate certain product offerings. This is particularly true if these products are not selling very well. In addition, the owner of the company may have some success in negotiating a lower price for those products that do sell well. The owner should be careful not to settle for whatever price she is quoted.
Another issue is payroll expense. All companies have problems with getting payroll expenses to a reasonable level. However. Kudler seems to have a problem in being able to pay highly specialized workers at the rate of the market. In addition, when on the specialized workers gets sick or quits it is difficult to find a replacement. Some of this will be remedied when the aforementioned problems are handled because it will create greater cash flow. The company must ensure that it can pay workers what they are worth. Failure to do so can be catastrophic and provide other stores in the industry with a competitive advantage. In addition, when employees are paid a living wage they are more productive because they are not worrying about their expenses or working a second job.
Another problem is the desire to expand further away from the current base of operations. Although the store already has several locations, these locations are relatively close to one another. As such Kathy is able...
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