No Savings...No Fee!
In today’s world cost management and cost reduction has become a priority for most businesses. Most companies are compelled to explore and exploit all possible cost reduction and productivity enhancement techniques. Knowing where and how to save money is what we are all about! There are essentially three basic ways to improve profits in a company:
-
Increase Revenue
-
Decrease expense while maintaining revenue
-
Improve productivity
Cost Concepts are business consultants that specialise in uncovering cost saving opportunities with organisations overheads. With our vast knowledge, experience and research we will assist in identifying where you are wasting money and will improve your bottom line. Savings are identified and costs are reduced in a variety of areas within organisations.
At the end of every project, Cost Concepts provides the client with a full report explaining how to save money within the business and highlighting the various cost reduction opportunities. If the client is satisfied with the cost management recommendations, Cost Concepts will then assist in implementing the savings. The cost reduction recommendations will result in long term savings, which will benefit the business for many years to come.
The table below indicates the amount that a company would have to increase sales to equal certain cost reductions, which is relative to the company's gross profit (GP).
|
GP |
R1 000 |
R10 000 |
R 35 000 |
R100 000 |
|
70% |
R 1429 |
R 14 286 |
R 50 000 |
R 142 857 |
|
60% |
R 1 667 |
R 16 667 |
R 58 333 |
R 166 667 |
|
50% |
R 2 000 |
R 20 000 |
R 70 000 |
R 200 000 |
|
40% |
R 2 500 |
R 25 000 |
R 87 500 |
R 250 000 |
|
30% |
R 3 333 |
R 33 333 |
R 116 667 |
R 333 333 |
|
20% |
R 5000 |
R 50 000 |
R 175 000 |
R 500 000 |
|
10% |
R 10 000 |
R 100 000 |
R 350 000 |
R 1 000 000 |
Example: If your gross profit is 20% and you were able to reduce your expenses by R10 000, you would need to increase your revenue by R50 000 to have the same impact on your bottom line.