Beginners Guide to fixed and variable costs

A Beginners Guide to Fixed and Variable Costs

As a cost reduction consultant, I often get asked about the difference between fixed and variable costs. If you are a business owner, it’s important to understand not only the differences between the two but also the implications of managing each type of cost. There can be hidden costs in your business that are fixed or variable, and while it’s good to get both types of costs down where appropriate, they may need two very different approaches. [Read more…]

3 False Economies when implementing cost reductions in your business

3 false economies in cost reduction in business

Cost reduction and effective waste management to reduce your overheads is not a simple task, knowing what inventory costs can be reduced, and which should not is an important aspect of being a cost reduction specialist. Today we will look through some examples of false economies, where cost reductions could, in fact, have the opposite effect and affect long-term business profits. [Read more…]