Methodology of formation of profit in the provision...

7.4. Methodology of formation of profit in the provision of paid services of training counseling

The methodology of forming the profit of a consulting firm when providing paid services within the functions of a training

Table 7.2

Consulting is similar to the above methods of forming the profit of a consulting firm when providing paid services of an expert and process nature.

The amount of profit for the period T in this case can be calculated as follows:

As you can see from this formula, the amount of profit in the provision of training counseling services depends on many factors. Let's select the main ones:

- the price of training counseling services;

- fixed and variable costs in the provision of training counseling services;

- the number of educational courses conducted;

- the number of listeners of one course on a fee basis.

The obtained expression (7.25) allows to develop and implement the strategy of the consulting firm activity in the real conditions of the behavior of consumers of services and competing organizations rendering services of this nature. So, in the absence of competition, the price of the training counseling service per unit of time according to the criterion needs to be increased and established within the limits of effective demand from consumers.

In conditions of competition from organizations providing training counseling services, the price of educational services per unit of time should be reduced, but to the level of the limit calculated according to formula (7.22).

Based on the formula (7.25), you can determine the constraints on fixed and variable costs (total aggregate costs) when setting the rate of planned profit (Rockp) in the process of providing the functions of training counseling for the period T:

Using the obtained expression, you can distribute the planned costs for performing various works related to the implementation of non-productive functions (organizational, management and information technology) consulting firm and providing free services.

Thus, by determining the average number of listeners of one course by statistical methods, as well as their share on a fee-based basis, setting the parameters of the service system (Tsokch; tk; Nk; Vok) and planning the profit (Rockp), you can calculate the total total costs associated with the implementation of training counseling services for the period T by the above formula. This gives grounds to outline measures to reduce costs, or at least to prevent their growth.

The third and fourth reasons for the formation of profits - the number of students of one course on a fee basis and the number of educational courses conducted - are the main ones, since they lead not only to an increase in the economic effect, but also to the popularity and authority of the consulting firm, and hence to the emergence new orders for the services of training counseling.

Thus, the increase in the profit of the consulting firm with a limited price of the training counseling service and a constant cost level is possible only due to the increase in the number of students of one course on a fee basis and the educational courses conducted.

On the basis of the expression (7.25), you can calculate the required number of listeners of one course on a fee-based basis to receive the planned profit (Rockp), provided that you specify the number of trainees studying for free during the period T, as follows:

Similarly, you can calculate the required number of educational courses conducted (# kp) to obtain the planned profit (Rockp) for the period T using the following formula:

The received expressions allow to set the necessary number of listeners of one course on a fee basis and conducted educational courses that ensure the receipt of the planned amount of profit.

In the process of managing the financial and economic activities of a consulting firm, it is necessary to determine the minimum number of trainees attending a paid course (Z & n.) and the minimum number of educational courses conducted (No.Kmjn), in which all costs will be repaid through revenue , and the profit will be zero (POKD = 0) for the period T. The breakeven point in the performance of the training counseling functions is calculated by substituting in the formulas (7.27) and (7.28) the value of the profit equal to zero (Rokn = 0):

For an example in Table. 7.3. Calculation of the planned and the minimum number of trainees on one paid course and the number of educational courses conducted in generating profits for the period T.

Table 7.3

Calculation of the planned and minimum number of trainees of one course being paid on a fee basis and the number of educational courses conducted during the formation of profit for the period T.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)