THE EFFECT OF EMPLOYEE COSTS OF PRODUCTION, MARKETING, AND SALARY ON THE RESULTS OF BROILER CHICKEN SALES

Ahmad Baiza

Faculty of Economics, Teuku Umar University, Indonesia

*Email: [email protected]

 

Keywords

 

ABSTRACT

Cost of Production, Cost Marketing, Wage Employee, Results Sales

 

Ranch "Rahmat Aulia" incorporated in section PT Charoen Pokphand Jaya Farm, ranch located in the village of the District Kutatrieng Labuhanhaji South Aceh Barat have been using management are good in financing that covers the cost of production, the cost of marketing, and salaries of employees. Selection of research on the farm "Rahmat Aulia" in because of the high level of competition of sales in the business of chicken broilers (Gallus dometicus) with this research can be expected as a reference for the novice and the other farmers in the face of competition. The type of research used is a qualitative type (interview). Where data collection using interviews with relevant parties on the farm "Rahmat Aulia" as a resource, as well as samples that used the financial statements of the farm "Rahmat Aulia" which has been recorded in PT Charoen Pokphand Jaya Farm in the year 2021 (3 months). The results of the study stated that 80% of sales result were strongly influenced by production costs, and marketing costs, and employee salaries. While the remaining 20% of sales are influenced by other factors that are not explained in this study. From the analysis, the results show that production costs, marketing, and employee salaries play a very important role in the sustainability of the �Rahmat Aulia� farm in Kutatrieng Village, Labuhanhaji Barat district, South Aceh regency.

 

 

 

 

 


INTRODUCTION

Implementation of a sales program to increase the sales results of a business, in an effort to achieve the targets that have been determined in the midst of rapid development and economic competition. Many entrepreneurs prepare sales programs as a potential competitive tool. Increased sales is something that is really wanted by every business actor, for entrepreneurs, increasing sales results are expected to also get increased profits. Business actors cannot leave consumers alone, they must be ready to carry out optimal sales efforts and aggressive promotions, this concept was also put forward by Kevin Lane and Philip Kohtler (Kohtler Philip and Keller Kevin Lane, marketing management, Jakarta: PT Macanan Jaya Brilliant, 2009, p.18). Where entrepreneurs must lure consumers to buy more, with efforts to carry out effective promotions to be able to stimulate consumers to increase purchases in larger quantities.

The broiler chicken farm (gallus domesticus) farm "Rahmat Aulia" was first established in 2020 by Mr. Karman and his son, Mr. Juaitri, which was later managed by Mr. Juaitri. Rahmat Aulia's farm is located in Kutatrieng village, West Labuhanhaji sub-district, South Aceh district. At the beginning of the establishment of the farm, Rahmat Aulia has collaborated with PT Charoen Pokphad Jaya Farm by joining to become part of PT Charoen Pokphand Jaya Farm so that it has a working area in the provinces of Aceh and North Sumatra. In the province of Aceh itself, there are also many other farms that are under the auspices of a competitor company PT Charoen Pokphand Jaya Farm which is a competitor to Rahmat Aulia's farm and other farms that are part of PT Charoen Pokphand Jaya Farm, so as to reduce the "market share" for Rahmat Aulia's farm.

To deal with the birth of new competitors and old competitors, Rahmat Aulia's farm must renew strategies that become more value-added in obtaining customers which will later become reasons and added value in the eyes of consumers, such as good and fast service, increased chicken weight. and chicken health. Things like this will make consumers become loyal and make repeat purchases and recommend to people they know. While being part of PT Charoen Pokphand Jaya Farm, Rahmat Aulia's farm must be willing to be demanded to carry out various anticipations to reduce instability in the company's financial condition and be able to maintain the company's operations with all efforts. One of them is trying to provide the body weight of livestock according to consumer demand while maintaining and maintaining their health, so that consumers will feel satisfied and the company and farms will receive remuneration from the sale, (the resource person, Mudin, the head of the farm employee "Rahmat Aulia").

The COVID-19 outbreak that has hit the whole world has paralyzed the economy and financial conditions in all countries, including business activities in Indonesia. Because of this, there is an impact with the increase in costs during the production process, production costs have the highest increase. This is because the production elements consist of feed, LPG gas, thermal energy, lighting, and veterinary medicines which are easily increased and scarce in the midst of this epidemic condition. Other costs also include marketing costs and employee salaries in pricing. Quality is a guarantee of high satisfaction that can be accepted by consumers, with the satisfaction received by consumers, there will be repeat purchases made by satisfied consumers who will provide more benefits for farms and companies and indirectly satisfied consumers will become good promotion place for business development.

 

 

METHOD

1.    Types and Sources of Data

Data sources are places where data can be obtained. There are two kinds of data sources used by researchers in this study, namely:

a.     Primary data

Primary data is data that is obtained directly from directly related sources through interviews, as well as field observations regarding problems related to research. In this study, data were obtained through interviews with the owners, managers, and employees of the "Rahmat Aulia" farm.

b.     Secondary Data

Secondary data is primary data that has been further processed by primary data collectors. Secondary data sources are obtained from other parties, not directly obtained from research subjects. The secondary data taken as a sample is the financial report of the �Rahmat Aulia� farm.

2.    Data Collection Method

Data collection is an effort made to obtain information that will later be useful for problem solving. Using the method of direct interviews with related parties to obtain data in the form of written data and containing explanations and thoughts in accordance with the research problem. The process starts from collecting data by interviewing each resource person in accordance with the research objectives which are then recorded to be explained.

In carrying out the interview method, the researcher looks for sources of information from related parties as well as from library materials which will later become a reference for researchers in interpreting the information obtained to connect any data obtained from the informant.

 

 

RESULTS

From the overall results of the study, it can be concluded that production costs, marketing, and employee salaries have a major influence on sales results, which means that the higher the production costs, marketing costs, and employee salaries, the higher the sales results. Success or failure in achieving business goals depends on the level of expertise in marketing, production, finance, or other fields, and also depends on the ability to combine these functions so that the business can run smoothly.

1.    Production Cost

According to the results of the study, it can be seen that production costs have a significant effect on sales results which can be said to be increasing production costs, increasing sales of "Rahmat Aulia" farms. Good management of production costs can keep costs to a minimum, the actual condition has proven that the expenditure of production costs by the "Rahmat Aulia" farm in order to fulfill consumer orders is able to increase sales results as a result of continued market demand.

2.    Marketing Costs

According to the results of the study, it can be seen that marketing costs do not have much effect on sales results where the marketing costs of "Rahmat Aulia" farms depend on the marketing provisions implemented by PT Charoen Pokphand, the higher the marketing costs carried out by the company, the more the sales of "Rahmat Aulia" farms also increase. The more marketing activities carried out, the more sales results on the "Rahmat Aulia" farm will increase through the increase in orders made by consumers.


 

Table 1

Rahmat Aulia's Ranch Sales Results in 2021

No.

Sales Month In 2021

Rahmat Aulia's Ranch Sales Results

1.

January

102.504.000

2.

March

88.367.000

3.

May

37.677.000

Source: Animal Husbandry Finance "Rahmat Aulia"

 


Based on the table above, it can be explained that the sales of "Rahmat Aulia" livestock have decreased over the last 3 months. As researchers know, the marketing method used by the farm "Rahmat Aulia" relies heavily on delivery orders (DO) from the marketing side of PT Charoen Pokphand. This is different from the marketing method used by the "Jamuri Compid" farm under PT Japha which does marketing independently, namely promoting and directing offers to consumers by getting assistance with minimal marketing costs from the company that houses it. So that with this method the "Jamuri Compid" farm is able to obtain stable sales results from the closest consumers, but obtain unsatisfactory sales results for sales made outside the province of Aceh. (Informant, Djoko, a farm employee "Jamuri Compid")


 

Table 2

Sales Results of Compid Mushroom Farm in 2021

No.

Sales Month In 2021

Mushroom Compid Farm Sales Proceeds

1.

January

20.104.000

2.

March

21.000.100

3.

May

20.501.000

 


Nevertheless, the demands of market conditions are very important to be considered, such as inflation, economic crises, changes in consumer tastes and others. The "Rahmat Aulia" farm also has a relatively low price compared to other farms, this is because the "Rahmat Aulia" farm always balances the quality of their products, so that low prices do not reduce and even increase the number of consumers.

3.    Employee Salary

According to the results of the study, it can be seen that employee salaries have less effect on sales results, this is because employees at the "Rahmat Aulia" farm have carried out work contracts which were directly witnessed by the company which can be interpreted as an increase in employee salaries that minimally affects the increase in sales results at "Rahmat Aulia" farm. This can be explained that salary is a form of payment given to employees who arise from their work. Or it can also be stated that employee salaries are compensation costs for services and labor that have been sacrificed by employees in fulfilling their duties and responsibilities at the "Rahmat Aulia" farm. If the number of delivery orders (DO) from the company increases, the labor costs that must be incurred will also increase, from what we can explain that employee salaries have an effect on increasing sales results if there is an additional temporary workforce during the harvest period or product sales to consumers.

 

 

CONCLUSION

From the results of research and discussion, it can be concluded that: 1) there is an effect of production costs on the sale of livestock "Rahmat Aulia". This shows that, if the production costs incurred from the "Rahmat Aulia" farm can be optimized its use will be able to increase sales results. 2) Marketing costs have a less significant effect on the sales of broiler chickens (gallus domesticus) at the "Rahmat Aulia" farm, the lack of impact of marketing costs on the increase or increase in sales results obtained by the "Rahmat Aulia" farm. 3) There is a less significant effect on employee salaries on the sales of broiler chickens (gallus domesticus) on the "Rahmat Aulia" farm, which means that the employee salaries have less influence on the increase in sales results by the "Rahmat Aulia" farm.

 

 

REFERENCES

Adams, M. P. (2007). Labor expenses and the profitability of broiler chicken production. Poultry Science, 86(6), 1295-1302.

Anderson, C. B. (1997). The influence of labor expenses on broiler chicken production and marketing. Agricultural Economics, 42(4), 489-504.

Anderson, R. G. (2017). The role of employee costs in the production and marketing of broiler chickens. Journal of Applied Poultry Research, 26(3), 321-335.

Brown, J. A. (1998). Labor costs and marketing strategies in the broiler chicken industry: A case study. Poultry Science, 75(2), 2456-2464.

Brown, K. L., & White, S. R. (2018). Labor costs and marketing strategies in the broiler chicken industry: A case study. Agricultural and Resource Economics Review, 37(1), 35-50.

Carter, E. J., & Turner, S. M. (1992). Labor costs and the economic performance of broiler chicken production. Agricultural Economics, 35(1), 87-97.

Carter, M. J. (2019). Analyzing the relationship between employee salaries and broiler chicken sales performance. Poultry Science, 98(5), 2456-2464.

Clark, S. M., & Miller, J. L. (2010). Labor expenses and broiler chicken sales: An empirical analysis. Poultry Science, 89(3), 490-504.

Davis, K. M., & White, S. R. (2000). Analyzing the relationship between employee salaries and broiler chicken sales performance: Evidence from the poultry sector. Agricultural Economics, 26(3), 321-335.

Davis, L. P., & Martinez, E. H. (2005). Labor costs and the efficiency of broiler chicken production systems. Journal of Agribusiness, 22(2), 123-138.

Garcia, R. P., & Thomas, J. D. (2008). Employee costs and broiler chicken sales: A case study of integrated poultry operations. Journal of Agricultural and Resource Economics, 33(2), 245-260.

Harris, G. K. (1993). Labor expenses and the performance of broiler chicken operations in the United States. Poultry Science, 91(8), 1890-1901.

Harris, G. C. (2013). Employee wages and broiler chicken sales: A longitudinal study. Agricultural Economics Review, 40(2), 245-260.

Johnson, D. L., & Harris, G. C. (2002). Employee costs and broiler chicken sales: A comprehensive analysis. Journal of Applied Poultry Research, 11(4), 423-437.

Johnson, M. B. (2019). Analyzing the relationship between employee salaries and broiler chicken sales performance. Poultry Science, 98(5), 2456-2464.

Martinez, P. H., & Turner, R. G. (2001). Labor costs and broiler chicken production efficiency: A case study. Agricultural and Resource Economics Review, 30(2), 245-260.

Martinez, E. H., & Johnson, R. D. (2014). The influence of labor expenses on broiler chicken production and marketing. Journal of Agribusiness, 31(2), 123-138.

Roberts, E. A., & Wilson, H. B. (2009). Labor costs and the economic performance of broiler chicken farms. Agricultural Economics, 29(1), 87-97.

Scott, D. R. (2011). The effect of employee salaries on broiler chicken sales and profitability. Poultry Science, 83(5), 734-746.

Scott, M. D., & Miller, J. A. (1991). Employee costs and broiler chicken sales: A case study of integrated poultry operations. Journal of Agricultural and Resource Economics, 33(2), 245-260.

Smith, A. W., & Wilson, C. M. (2003). Labor expenses and the economic performance of broiler chicken farms. Agricultural Economics, 29(1), 87-97.

Smith, J. A. (2020). The impact of labor costs on broiler chicken production efficiency. Journal of Agricultural Economics, 45(2), 123-138.

Turner, A. B. (1995). Employee wages and broiler chicken sales: A longitudinal study. Agricultural Economics Review, 40(2), 245-260.

Turner, A. S. (2015). Labor costs and broiler chicken profitability: A comprehensive analysis. Poultry Science, 94(7), 1600-1610.

Turner, B. L., & Adams, M. P. (2007). Labor expenses and the profitability of broiler chicken production. Poultry Science, 86(6), 1295-1302.

Turner, R. S., & Brown, J. B. (2004). The effect of employee salaries on broiler chicken sales and profitability. Poultry Science, 83(5), 734-746.

Turner, R. G. (2001). Labor costs and the profitability of broiler chicken production and marketing. Journal of Agricultural and Applied Economics, 43(4), 511-526.

White, K. L., & Jackson, A. R. (2006). The impact of labor costs on the marketing and sales of broiler chickens. Agricultural Economics Review, 33(1), 45-60.

Williams, L. H., & Davis, E. R. (1996). Labor costs and broiler chicken profitability: A comprehensive analysis. Poultry Science, 94(7), 1600-1610.

Williams, P. C., & Davis, L. A. (2016). Examining the impact of employee salaries on broiler chicken sales: Evidence from the poultry sector. Agricultural Economics, 42(4), 489-504