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The Key To Corporate Profitability: Can We Control Costs?

2013/12/15 20:58:00 18

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why does the growth of scale do not bring tangible profits to this enterprise? 
 the answer is that the profit that can be harvested is eaten up by the increasing < a href= "http://www.91se91.com/news/index_f.asp" > cost < /a >. On the one hand, the cost and income of enterprises almost synchronously increase, and the scale benefit has not been reflected in the improvement of gross profit margin. On the other hand, the increase in revenue is due to an increase of 180% of the sales cost, which almost completely offset the gross profit growth from the increase in revenue. 
 can't the enterprise profit? 
 not only can, but also have up to 13.8% < a href= "http://www.91se91.com/news/index_c.asp" > sales profit < /a >, equivalent to 6 million annual profit. 
 how to make a profit of 6 million? 
 the answer lies in controlling costs. According to the analysis, we have developed a plan of action called 102030: 
 1. the proportion of product manufacturing cost decreased by 10% through technological innovation and production management, which is equivalent to a 2 million 400 thousand increase in net profit. 
 2., such a small scale enterprise, the annual management cost is 9 million 700 thousand! By reducing the management cost of 20%, the profit of the company can be increased by 1 million 600 thousand. 
Sales of 34 thousand and 400 are exchanged for 9 million 900 thousand of the sales cost. A decrease of 30% a href= "http://fz.sjfzxm.com/" > sales cost < /a > will only affect 5% of sales. That means profits can be raised by about 2 million. 
 controlling cost, the company's profit can be as high as 6 million, and its sales margin can reach 13.8%! 
 when we want to reduce costs, the biggest problem we have is: almost everyone says it is impossible. We can't lower the cost of sales, so we won't have enough income. We can't reduce people, so we don't do a lot of things. We have no way to reduce production costs. We have thought about the past. The opposite is true: if the boss has the will to profit anyway, if the manager changes his mind, from rejecting management cost to falling in love with cost, every enterprise can find ways to reduce costs and increase profits. 
The story of a href= "http://pop.sjfzxm.com/popimg/fz/index.aspx" > Konosuke Matsushita < /a > may help us understand what will and change thinking: a group of subordinates discuss together to reduce the cost of a product. When we discuss it, we can not find a way to reduce the cost by 10%. Matsushita listened to it for a long time, and finally said, "if you can't reduce the cost by 10%, then think of a way to reduce it by 30%!" 
 what is the biggest enemy of profit? I believe it is a waste of cost and cost. What is the root cause of waste? I believe it is bureaucracy behind false ideas and erroneous ideas. What is the performance of bureaucracy? I believe that we do not understand the reality, do not go to the scene to investigate, sit in the office and make decisions based on reports and outdated experiences. 
 if we really want enterprises to have profits to ensure the sustainable development of enterprises in the future, we must: 
 set clear sales profit targets, such as Inamori Kazuo's passing goal of not less than 10%, or 20% of the challenge. 
 carefully calculate each business, every product, every customer, every department, every employee, each project's input and output, income and expenses. 
 implement accounting and related management to the monthly, weekly, and daily basis of each department. 
 all managers go down to the grass-roots level to make a realistic and reasonable action plan to reduce costs and protect sales profits. 
 the profitability of enterprises is poor. In the past, we often attributed the small scale of enterprises. When we are trying to grow bigger, we find that the larger the scale, the worse the profitability. The larger the scale, the greater the risk. Over the past two years, more companies have attributed the deterioration of profitability to the external environment, which suggests that the deterioration of the external environment has led to a deterioration in our profitability. In fact, the fundamental reason is our boss himself. It is our own blind pursuit of scale. It is the excuse that we ourselves find "enterprises can not make profits when the economy is depressed." 
 the real key to the profitability of enterprises is whether they can control costs. If we manage the cost, the profit margin of any enterprise can be improved by 5%-15%! 
 cost is stronger than tiger. To control costs, any enterprise can make profits in any case!