1. The inventory and hardware procurement from the suppliers is one cost factor for the company. As Sales increase, the inventory management and timely procurement will be key to maintain the flow in the supply chain and groundwork has to be done on ways to acquire the inventory on a cheaper basis. Collaborating with suppliers from overseas countries like China will be a good way to reduce product costs.
2. The Ecommerce marketplaces charge a fee for the product listing on their websites and for reputed sites like Amazon, the charge will be higher compared to others due to its large customer base. Some of the websites also charge a minute commission per product so the company has to calculate the Acquisition cost vs Expected Revenue for these marketplace listings.
3. The Sales representatives will charge a commission per sale, in addition to their base salary according to the number of hours worked. It is beneficial to the company in the long run to hire Sales representatives who have had experience in the medical industry.
4. Once the Customer base reaches a higher level, the company can investigate outsourcing the Customer care service like phone calls for customer enquiries, product enquiries and emergency services. The company has to weigh the costs of outsourcing the entire service against the hiring of a personal Customer service team.
5. All the operations of the company will be handled by staff in various departments like IT, Marketing, Sales etc. and the staff costs will include the salaries of the staff. Recruiting is a very important aspect of the company that can be leveraged into actual results. With good hiring of people at right times, they can bring in so much value to the business.
