Costs Which Can be Avoided

Taking time to eliminate hidden costs in business may be the best short-term investment.

Tuesday, February 8, 2011

In the article by Omar Becerril at, he highlights some of the types of expenses in which businesses often incur. Even highly efficient processes may be covering up unnecessary costs that can be avoided.

1. Cost of obsolescence:
Nothing is more detrimental to sales of products than to look old next to the competition.

2. Cost of poor logistics:
A badly planed a delivery route increases costs unnecessarily.

3. Cost for replacement of equipment:
Consider carefully the value for your money, especially when acquiring technology infrastructure in which cheap almost always ends up being more expensive.

4. Communication costs:
Carefully analyze what are the communication needs of your employees. Not everyone needs a laptop, smart phones and wireless Internet.

5. Cost for poor service:
The best known, but less quantified and one of the most dangerous, because it can lead the company to fail.

7. Costs bad production plans:
These are losses as a result of the lack or the excess production of the company.

8. Cost of electricity:
The bigger your company, the more costly is the misuse of power, and the more expensive the imperfections of the grid become.

9. Cost of staff turnover:
It is always best to retain the employees you have than to let them go for any reason.

10. Office items:
Is it complicated to control, but also a large waste from misuse or from and constant theft.

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