Funding For Business And Service Industries

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1.1 Sources of funding available to business and service industries Despite all the differences among companies, there are only a few sources of funds available to all firms which include the following: Businesses and service industries make profit by selling a product for more than the cost to produce it. This serve as basic source of funds for any company and it is also a method that brings in the most money. Businesses can borrow money through bank loans as an individual also does. Money can be borrowed either privately which is through loans from banks or publicly which is through debt issue. The problem of borrowing money is the interest that must be paid to the lender. A company can generate money by selling part of its shares to…show more content…
The word, ‘special’ or ‘new’ as added to any item on the menu list can increase orders by up to 20 per cent. Often these highlighted items are dishes with the lowest food cost which means they may not the best value for guests. Each menu item is priced according to its cost. Most restaurants want to keep their food cost below 30 per cent. However, you won’t see an oddball pricing of $19.31 simply because it fits a formula. Customers don’t perceive a difference between $19.31 and $19.99, so the restaurant raises the price and the extra 68 cents goes to the bottom line Up-selling. In the hospitality industry, more emphasis is placed on training employees to become better sales people. The waiter, hostess, and bar-at tender become extensions of their sales and marketing team. Now up-selling has become the industry standard, as side dishes, appetizers, desserts and drinks all help in building a higher average cheque per customer. Your server is trained to ask if you want to add mushrooms or prawns to your steak dinner, or to try a specialty coffee with your dessert. Some restaurants expect their servers to suggest bottled water or Perrier when you ask for water, and offer a bottle of wine instead of the two glasses you asked for. The best servers take every opportunity to up-sell you on an item. I had to say, “No thanks”, at least a half dozen times during our last restaurant experience so as to be able to go back home with some money
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