Cost Reduction vs Cost Control
Reducing costs to increase profit may seem like a logical approach, but unfortunately it isn’t always an easy thing to accomplish. Often times, business owners feel that cutting the cost of what they pay out to vendors is the only way to lower costs. In reality, there are many other options when trying to increase profit through cost reduction.
Tactics for Cost Control:
- Reduce the number of steps in key processes
- Eliminating the number of errors and corrections through training and systemization
- Give your employees the tools to better plan their time, reduce their costs and increase their productivity
Reducing costs has to be studied and planned else they have the same effect as slashing away without regard. If in doubt on what to do, contact your friends at Holt Marketing & Management Services and let them put their 25 years of experience to work for you!