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We see many businesses trying to get a lot of income in a highly competitive market by providing their services and product really cheap. While this is not a bad thing to be known as Low Price King if you did your maths on pricing and how to deliver in the budget, many among you file losses due to avoidance of Rule No1 of this market. i.e. "Be Lean & Stick to the plan" You could be able to provide products because you figured out the volume to sell, maintaining the operation etc. Like in the case of Wal-Mart or BigBazaar in India, they have a very great supply chain to make them be able to do it. So it's important for your business not to be slightly over budget in any field. The major problem comes in Operations. You need to be lean and should use perfect tools and checks (bound by time & budget) in place to do so. Let me give you an example: If a small shop will sell 500 pieces of AwesomeCheapThing at $1 each day with a profit margin of just 5cents, he gets (5x500)/100 = $25 in profit each day. Let's see if one day its supply truck came late by just 1 hour which reduced its sell to mere 450 pieces for that day. He lost 5x50 = $2.5 on direct sell. But if we analyze what he actuall