Cost Reduction

Reducing Expenses Without Making Cuts

How can a business increase profits without painful spending cuts? Most common “go-to” strategies in business for reducing business expenses called for either doing with less or taking something away from someone, involving pain.  Here are the most common strategies listed… Cutting Travel Expenses Hiring Freeze or Hiring Reduction Layoffs Cancelling holiday parties and events Reducing “perks” Salary Freeze or Salary Reductions Reducing or Eliminating Year-end Bonuses Cutting Workers’ Hours Forced Unpaid Vacations or Furlough Program Increasing Telecommuting Four-Day Work …

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Savings is the Easiest Path to Profit

What is overlooked when it comes to improving profit? Reducing cost is vastly overlooked in many organizations when they want to be more profitable. This is due to: The lack of expertise in specific areas of the business Budget constraints i.e outsourcing the project Busy personnel primarily focused on top-line growth There are many wasteful activities and spending happening continuously that could be streamlined to enhance profit.  The bigger the organization, the bigger the opportunities. For example: A typical business …

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What is Cost Reduction Anyways?

As a Cost Reduction Advisor, I get asked this question a lot.  Most fear that cost reduction is about making drastic cuts, kind of like getting on an extreme diet to lose weight. Who loves that? Personally, I do not. Anything extreme always ends in failure. Cost reduction is the process used by companies to reduce their costs and increase their profits. Depending on the company’s products or services, their strategies can vary. Why cost reduction strategies fail The majority …

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