Companies that do not control their costs do not stay in the market. Are everyone in the company aware enough of the importance of costs in these times? How can you double your profits? Can you sell and produce twice as much? Could your company grow to double the current size in the same market? Well…. you don’t have to!
By reducing unit costs by just a small amount, you can double your profits without the need for a single new customer and without creating a single additional product. You won’t have to hire more people, enter new markets or get a new production space – just focus on being more effective and efficient with what you already have. In any company there are numerous opportunities to reduce costs without affecting customer satisfaction. Improving costs is much more than controlling and cutting costs.
True cost management means:
– deep and continuous understanding of costs,
– good cost design,
– identifying opportunities for cost improvement, and
– last but not least, the choice of the best ways to improve costs.
Do you think this is the healthy approach in these difficult times?
Source: Alin Posteucă on LinkedIn