The Cost That Enterprises Can Not Easily Cut Down

In addition to having the same cost content with other enterprises, each enterprise has its own specific cost content. That is to say, each enterprise has allocated different specific cost contents according to the way the enterprise seeks profit.

It can be understood that for the same cost item, it is abnormal cost in this enterprise. It should be cut down. It is a normal cost in another enterprise, and it must not be cut down.

For example, some enterprises increase the number of employees as an abnormal cost, take a direct cut down recruitment plan, cut down the cost of employment of recruiters, and even reduce job losses.

However, some enterprises need to increase the number of employees. They include the cost of recruiting and the increase of new employees as necessary costs, and sometimes even raise the salaries and benefits of employees.

The same enterprise often determines the specific stage cost content according to the development process of the enterprise.

This is often the case. At this stage, it is a normal cost expenditure. It should never be cut down. At another stage, it is an abnormal cost which must be cut down.

For example, in the early stage of product launch, advertising cost is very necessary. It should not be cut down. Instead, it needs to increase the cost of advertising frequently. When a product becomes a brand product or a star product, it should cut down part of the advertising cost or reduce the cost of advertising in some aspect.

After understanding the above two points, we will understand that people who cut off the cost by people who follow the rules of others, often get stuck in the wrong area of cost management.

Cutting costs has always been a hot topic and thorny issue of enterprise cost management, so there are many books and magazines on cost cutting in the market. These books and magazines have explored various theories and effective measures of cost management. There are also more experts in cost management in society. These experts have put forward many good ways to reduce costs. All of these are worth learning and learning from, but there is a very important point. I must point out that although learning and drawing lessons are good, we must not be obsessed with temptation, nor can we apply mechanically, but to learn and use them more effectively.

To speak plainly, on the one hand, we should learn how to cut costs, and on the other hand, we should stick to those costs that should not be cut down according to the actual conditions of our enterprises.

Having said so much, what costs should not be cut down?

It must be unreliable to tell which specific costs should be cut off. It is generally believed that such costs should not be cut off, such as sales expenses, equipment pformation, product development, staff training, salary and welfare, because these are the basic costs to ensure the profit and basic operation of an enterprise. As an enterprise, if it is necessary to cut down these costs, it is not as appropriate to directly turn off the enterprises. Of course, the specific costs to a certain enterprise should not be cut down.

這里需要特別指出，也許很多老板都認為銷售費用，是企業很大的成本負擔，從而片面認為銷售費用必須砍掉，這種觀點是不全面的，老板們除了考慮花費了多少銷售費用，更應該分析花費這些銷售費用帶來了多少銷售額，產生了多少直接利潤，未來還能帶來多大的銷售額和潛在利潤，因為很多時候銷售費用產生的效果不是表現在當前，或者不是全部表現在當前，如果站在花費銷售費用的當時，來看待投入產出效果，經常不是十分明顯，因為效果和利潤相對于成本開支是滯后的，還有銷售是企業產品的出口，是距離企業利潤最近的環節，也是企業增加、盤活現金流的重要端口，要是因砍掉銷售費用帶來的銷售不暢，造成的庫存積壓和資金緊張，那才是真正最大的成本支出，因此在對待銷售成本上，老板們不能一葉障目，要看投入，更看產出，看眼前，更兼顧未來，

Scientific, comprehensive, long-term and dynamic analysis can not cut down the cost of sales at will.

And cutting down some cost items at will, and ultimately cutting the cost, will eventually kill the enterprise. So how can we talk about the development and profit of the enterprise? I am afraid that only the bankruptcy has been made. It must be clear that the standard of evaluating an enterprise is not the cost level, but the profit level, the profitability and the development potential. Therefore, the bosses should not put too much energy into how to cut down the cost. Instead, we should put more energy on how to maximize profits, improve profitability and enhance the development potential, so we must not commit a naive illness in the management of enterprise development. In terms of cost management, if an enterprise disregards the actual situation of the enterprise, in order to reduce the overall cost of the enterprise.

To sum up, in the cost management, the dispensable cost must be cut down, but the more cost can be less, and the cost of maintaining the basic operation of the enterprise, developing the market and increasing profits is absolutely not to be cut down.

If the cost is cut down arbitrarily, the profit will be reduced and the profitability will be reduced.