Background Image

Topic: business costs

How To Reduce Costs For A Small Business

Reducing the costs in your Small to Medium Enterprise (SME) is a way to fast track business process improvement. Implementing the right cost reduction strategies and techniques can result in immediate savings and can affect long term profitability. It’s crucial to understand that reductions in costs can come in various ways. Evaluate your profit ... Read More

  December 5, 2017     

Diminishing Returns: Why More Inputs Can Increase Per-Unit Cost

Many business leaders believe that scale is an answer to inefficiency or poor production, the idea being that a business may be inefficient at a given scale but can unlock ‘scale efficiencies’ as it grows larger and can spread fixed costs across a larger platform. While scale can improve productivity, it is worth noting that […] ... Read More

  November 30, 2017     

Small Businesses Reap Big Benefits by Reducing Costs

Reducing costs in a small business is one of the many ways you can improve how effectively a small business operates. It’s important to take the time to step back and look at where you can make savings. By changing old techniques and implementing new strategies, you will not only see savings in the short-term, […] ... Read More

  November 10, 2017     

Mark-ups and margins: Making a profit without the mess

As customers, we all know the frustration when we feel products have been priced substantially higher, creating a very expensive purchase price. What exactly is a mark-up in accounting terms and how does it differ from a profit margin? Mark-ups and margins have sadly been used interchangeably without their true meanings being properly understood. H ... Read More

  October 27, 2017     

Funding UK’s Small and Medium Sized Businesses

Small and Medium Sized Enterprises (SMEs) are a vital component to the economy of the United Kingdom. In fact, SMEs account for at least 99% of the businesses in every main industry sector. SMEs make up a significant portion of the private sector in the UK, and this article seeks to examine their key characteristics […] ... Read More

  October 11, 2017     

Boosting Efficiency For SMEs

Smaller companies may face productivity challenges that larger businesses may be mostly immune to. Since having adequate funds is usually a key challenge for Small and Medium Enterprises (SMEs), it is essential that they make their business as efficient as possible in order to maximise productivity and minimise costs. While large corporations have ... Read More

  October 10, 2017     

How to Reduce Costs as a Small or Medium Sized Enterprise

Since sourcing adequate funding is often one of the biggest challenges faced by Small and Medium Sized Enterprises (SMEs), managers of such businesses should always be on the lookout for ways to reduce costs. In this article, we establish some easy methods for reducing costs as an SME, so that you can invest in other […] ... Read More

  October 6, 2017     

The Challenges of Accurately Calculating Inventory Costs

Accurately calculating inventory costs can be problematic for many businesses. Regardless of the industry you operate in, inventory is often an organisations largest asset and accounts for a significant portion of the business expense account. Therefore, it is essential for companies to accurately assess factors affecting inventory management to he ... Read More

  September 22, 2017     

How Inventory Management Software Informs Better Business Decisions

Inventory management software can be costly, especially if you are a small business. However, if incorporated into a business properly it can become quite the asset. We look at five ways that inventory management can help inform better business decisions. Time saver Good inventory management software allows you to keep on top of your inventory, [&h ... Read More

  September 18, 2017     

Looking at Direct and Indirect Costs

Business has an endless amount of costs that are involved in the purchasing process and it is in your best interest to know where they are coming from. Essentially, you’re trying to figure out how much a product will cost to produce, so you can charge more than the overall cost of producing it. However, […] ... Read More

  September 1, 2017     

Trade Discounts: Are They Right For Your Business?

For many businesses, discounts are a common tool to attract business, clear out slow moving inventory and reward loyal customers. For a business that is mostly in the business of manufacturing inventory, rather than in the retail space, discounts are a key tool to tailor service and pricing to your customers’ specific needs. Let’s take [&hellip ... Read More

  August 29, 2017     

Penny pinching? Here are some ways to reduce costs

With global recessions, increasing oil prices and increasing competition, saving money wherever possible and thereby maximising profits is the name of the game. Identifying areas for potential savings can be daunting although you need not fear the process as there are several simple ways to reduce business costs. Automation Depending on the size of ... Read More

  August 19, 2017     

Why Inventory Costs Should Matter To You

Inventory costs are the costs related to storing and maintaining a business’ inventory over a certain period of time. Typically, inventory costs are described as a percentage of the inventory value on an annualised basis. They vary strongly depend on the business field, but they are always quite high. It is commonly accepted that the [&hellip ... Read More

  August 11, 2017     

Inventory control for distributors – success is within reach

To solve inventory control challenges, an inventory management software is imperative in providing an easy and effective solution, especially for manufacturers and distributors. The business of distributing involves matching the incoming product from a supplier to the ordered and shipped volume. In an ideal world, this results in little stored inve ... Read More

  August 11, 2017     

Delving into Discount Pricing Strategy

Pricing strategy is fundamental part of a marketing with a strong focus on generating revenue and, ultimately, profit for the company. In a marketing campaign, a pricing strategy, such as discount pricing, can be considered the pursuit of identifying an optimum price for a specific product. What makes a successful pricing strategy? Numerous factors ... Read More

  August 7, 2017     

Setting Prices: Five Key Strategies

When you’re first starting out, it can be difficult to set prices for your products. Although pricing can be a difficult problem, it is also a crucial one to solve. One of the biggest factors that determines a business’ future revenue is its pricing strategy. Let’s take a look at the basics of five well-known […] ... Read More

  August 5, 2017     

Accurate Costing for a Profitable Business

Accurate costing of your products can aid you in making well-informed decisions. Business costs must be accurate for several reasons, which we shall explore a little more in this article. Sales and budgeting Firstly, sales prices must be set accurately to ensure that firstly the company makes a profit, and secondly that they make the […] ... Read More

  August 4, 2017     

The Impact of Trade Barriers on Business

Tariffs increase the price of products, reducing demand and thereby protecting domestic producers from external competition. Each country tends to place higher tariffs on products which are thought to be trade sensitive. Below, we summarise how tariffs can influence your business. Types of Tariffs Ad Valorem The most common tariff used is the ad va ... Read More

  July 3, 2017     

Why Accurate Costing is Vital for Success

Inaccurate information about your company’s expenditure can greatly inhibit your capacity to make and maintain a successful business. Accurate costing information enables managers to measure profit, so that they can make the best decisions for the company’s future. Below, we summarize precisely why accurate costing is so crucial to the success ... Read More

  June 14, 2017