Cost Optimization & Profit Growth
Do you know the actual cost of the products/services you sell, beyond just the direct cost of production? This includes expenses such as marketing, rent, salaries, and electricity. The profit you make on each item is also known as your profit per product or margin per product. If you're unsure about any of this, it's important to analyze your business and determine the costs involved. We can assist you in calculating costs for each product/service and measuring cost elements such as timesheets, norms, and standards.
Once the costs have been calculated, we can help you identify inefficiencies and blockages that may be hindering your company's profitability. Analyzing your business operations and identifying potential issues is crucial to realizing long-term efficiency improvements. This helps answer questions such as:
· the effect of a $50 increase in price on your overall company profit,
· the ability to increase unit sales without scaling the business or employing more people,
· the profitability of each employee in your business.
· whether you should buy or lease the equipment used in the production.
We offer detailed analysis to show you exactly what contributes to your bottom line. Pricing strategies, expansion strategies, supplier negotiations, and cost-cutting exercises can all contribute to a healthier organization. While profit is important, achieving and maintaining profitability is the most sustainable way to grow the impact of your work.