Tags |
|
|
Links |
|
|
Casual Articles - Reaping the Rewards of Cost Cutting
It matters very little whether you are a selling rookie or a seasoned professional, sooner or later, you will find yourself mired in a selling slump. There are a number of actions you can take to shorten the duration of the slump, lessen the financial impact and reduce the emotional drain that a slump can cause you. This is 'Tip 5' in a series.Selling slumps are as perennial as the seasons but they don't need to destroy your career. Understand that they are part of the marketplace and they always will be. They are caused by a variety of factors but always keep in mind that you didn't just wake up 'dumb' one morning. When you understand that fact, it will be easier to recognize that the situation is temporary. In old writings authors often used the term, "it came to pass". They didn't use the term, "it came to stay".Tip #5: Build relationships rather than simply working to establish rapport. Many sales trainers, sales courses and selling books teach the importance of establishing ra
But, how does one achieve such staggering results? Essentially by following a three-step process:
Step 1 - Challenge demand internally
The first step in capturing value from costs starts with vigorously questioning the demand for the product or service being purchased.
Is it a strategic or a
I am often asked to assist with writing business plans. While a business plan is often needed when you are getting financing for your business, I find that most business owners don’t find them very useful. Why not? Because usually they are written from a very long term frame (typically five years) and once they are written, they are put on a shelf and never looked at again. I’m going to suggest some ways that you can get more out of your business plan.1) Review your business plan frequently. Business plans aren’t meant to be static. They are mostly a long-term strategic tool, but to be effective you need to look at them regularly and update your strategies. How often? I’d suggest quarterly. Look at which of your strategies are working and which aren’t. Do more of what works and less of what doesn’t. Ask yourself why some are working and some aren’t. What can you learn to make your business stronger?2) Add a lifestyle component to your business plan. I have yet to see a business plan that includes your ideal lifestyle.
And they are doing this without launching costly new initiatives or major capital investments. Seems difficult? Only if we are bound by the traditional approaches to profit growth.
Take the case of a business with 50% margin and a 10% bottom line profit. To double the profit to 20%, business mathematics would suggest you could try a range of approaches from doubling your sales (not easy in these days of fierce competition) to improving the margin by as much as 20 points through better productivity.
In most cases, this may involve shedding jobs at the risk of losing valuable corporate memory, not to mention the attendant social costs.
Often overlooked is the profit opportunity that lies hidden within the operating costs of most businesses.
In ERA's work with organisations, of all types and sizes, right acoss the various economic sectors round the globe, it never ceases to amaze us the surprisingly large values which can be unlocked from business operating costs.
What's more, the value release goes directly to the bottom line. Even though every business nowadays claims to manage their costs prudently, many are continuing to over pay - by as much as 75%.
Even a saving three times smaller would have been enough to double the net profit in the above example.
Such are the possibilities of cost reduction management.
But, how does one achieve such staggering results? Essentially by following a three-step process:
Step 1 - Challenge demand internally
The first step in capturing value from costs starts with vigorously questioning the demand for the product or service being purchased.
Is it a strategic or an
Your fund raising letter must persuade the recipient to take an action that much of humanity thinks peculiar: to give money away.To accomplish this seemingly unlikely objective, your appeal needs to be built on the psychology of giving. Forget your organization's need. Instead, focus on the needs, the desires and the concerns of the people you're writing to. Your job is to motivate them.People send money because you ask them to. Public opinion surveys and other research repeatedly confirm this most basic fact of donor motivation. "I was asked" is the most frequently cited reason for giving. Moreover, the research confirms that donors want to be asked. Focus group research also reveals that donors typically underestimate the number of appeals they receive from organizations they support. These facts help explain why responsive donors are repeatedly asked for additional gifts in nearly every successful direct mail fund raising program. When you write an appeal, keep these realities in mind. Don't allow your reticence about
In most cases, this may involve shedding jobs at the risk of losing valuable corporate memory, not to mention the attendant social costs.
Often overlooked is the profit opportunity that lies hidden within the operating costs of most businesses.
In ERA's work with organisations, of all types and sizes, right acoss the various economic sectors round the globe, it never ceases to amaze us the surprisingly large values which can be unlocked from business operating costs.
What's more, the value release goes directly to the bottom line. Even though every business nowadays claims to manage their costs prudently, many are continuing to over pay - by as much as 75%.
Even a saving three times smaller would have been enough to double the net profit in the above example.
Such are the possibilities of cost reduction management.
But, how does one achieve such staggering results? Essentially by following a three-step process:
Step 1 - Challenge demand internally
The first step in capturing value from costs starts with vigorously questioning the demand for the product or service being purchased.
Is it a strategic or a
If you've ever flown economy class on an international flight then you've probably noticed that the airline makes you walk through Business or First Class to get to your economy seat. You become very much aware of the wider isles, the more spacious, comfortable seats and the greater leg room.As you squeeze into your "cattle class" seat you wish you were in front of that curtain enjoying the better food and the extra service. The airlines do this deliberately; they want you to wish you were in Business or First Class.Only 20% of the aircraft is reserved for "big comfy seat class" however, that 20% contributes 80% of the profits.Many sales and business people feel the pressure to be competitive and initially offer their cheapest product or service to the customer or client. It then becomes much harder to offer a better or enhanced product or service.Picture a new car in the showroom, it's always the top of the range model with all the added extras, they don't show you the basic economy model. Some years a
Often overlooked is the profit opportunity that lies hidden within the operating costs of most businesses.
In ERA's work with organisations, of all types and sizes, right acoss the various economic sectors round the globe, it never ceases to amaze us the surprisingly large values which can be unlocked from business operating costs.
What's more, the value release goes directly to the bottom line. Even though every business nowadays claims to manage their costs prudently, many are continuing to over pay - by as much as 75%.
Even a saving three times smaller would have been enough to double the net profit in the above example.
Such are the possibilities of cost reduction management.
But, how does one achieve such staggering results? Essentially by following a three-step process:
Step 1 - Challenge demand internally
The first step in capturing value from costs starts with vigorously questioning the demand for the product or service being purchased.
Is it a strategic or a
At the end of my direct sales presentation Kathy asked if she could book a party. When I went to do her show I was surprised to see another consultant, Lisa, at Kathy's show. I asked Lisa how she knew Kathy and she said with a nervous giggle, "Well, I babysat her kids since they moved here. Kathy didn't realize I'm with this direct selling company so she invited me. That's okay because I wanted to see your presentation."Well, it wasn't okay. This shouldn't have been my booking. It should have been Lisa's. Are you like Lisa? Are you being invited to home party plan demonstrations of your own products? There are many ways to let people know you're in direct sales. Here's just a few of them.1. Never leave home without your business card, catalog, the brochure for this month's specials, and recruiting information. You never know who you could be giving this information to.2. Never take your catalog apart and put the pages in plastic sleeves so you can use the catalogs for the season. Instead, encourage your guest
What's more, the value release goes directly to the bottom line. Even though every business nowadays claims to manage their costs prudently, many are continuing to over pay - by as much as 75%.
Even a saving three times smaller would have been enough to double the net profit in the above example.
Such are the possibilities of cost reduction management.
But, how does one achieve such staggering results? Essentially by following a three-step process:
Step 1 - Challenge demand internally
The first step in capturing value from costs starts with vigorously questioning the demand for the product or service being purchased.
Is it a strategic or a
Many countries have a freedom of information law. These laws give individuals the right to use their records, as well as police, court and prison records. From country to country, the kind of information that is retained and available varies greatly. They refer to the screening of foreign nationalists in order to safeguard and protect the nation's interests. International background checks are conducted for a number of reasons. They may range from international employment opportunities to educational facilities.Reputed background check agencies are able to provide employment and education verifications in practically every country in the world. Since international background checks may require the knowledge of many languages such agencies have a multi-lingual staff, and when necessary they utilize an outside translation service to facilitate verifications. Conducting an international background check involves a number of challenges. Obtaining international verifications becomes difficult because of the apparent time and language barriers
But, how does one achieve such staggering results? Essentially by following a three-step process:
Step 1 - Challenge demand internally
The first step in capturing value from costs starts with vigorously questioning the demand for the product or service being purchased.
Is it a strategic or an operational cost? an we eliminate the need for this cost altogether? If it is absolutely necessary, is it needed as frequently?
Is it worth paying more for additional service and/or quality?
Is there a clear business case based on total cost of ownership? Can we pay for use rather than pay to own?
Step 2 - Get the right supply relationship
Next step in the process is to get the fundamentals right with the supply relationship.
An optimal relationship creates value for both you and your supplier because it delivers value to the end user - who is after all the ultimate customer for both of you.
In building supply relationships take care to avoid extremes.
It is unwise to base supply relationships on blind trust.
It is equally unwise to take a "winner takes all" adversarial stance. Be a professional sceptic and check out the supplier assertions.
Make sure you are only paying for what you need and negotiate to eliminate unnecessary bells and whistles.
You should be fully aware of your cost analysis to help identify excessive margins in supplier pricing.
At the same time, treat the supplier as a partner in your business and work co-operatively to identify savings.
Step 3 - Improve supplier value creation
Sustainable value from the supply relationship does not arise by you simply pushing your costs upstream to the supplier.
True, you have moved the costs out of your business but
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.casualarticles.com/article/43465/casualarticles-Reaping-the-Rewards-of-Cost-Cutting.html">Reaping the Rewards of Cost Cutting</a>
BB link (for phorums):
[url=http://www.casualarticles.com/article/43465/casualarticles-Reaping-the-Rewards-of-Cost-Cutting.html]Reaping the Rewards of Cost Cutting[/url]
Related Articles:
Good Manners Enhance Your Chances of Success in Your Career
How To Celebrate Christmas At Your Dating Site!
Email Marketing Software Leverages Limited Marketing Budgets
Bookmark it:
|