But a significant assumption by many businesses is that customers are more price sensitive than they really are. It is important to understand your customer base and the degree to which they are sensitive to modest price changes. Having a better understanding of this issue will help in making pricing decisions. The knee jerk reaction of many managers when it appears that work is not getting done in a timely manner is to hire additional people. But very often the real problem lies in the underlying process.
Processes can become very inefficient and over-complicated.
When this happens it takes more people to get all of the work done. Or, more appropriately, it requires simplifying and refining the process. Look at your various proceses and analyze each one. The Easy Way points out some basic concepts in improving processes. In every business there are certain financial performance measures that are more important than others.