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 Altonivel.com.mx, 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.

More on this topic

Strike and Economic Losses

September 2018

Exporters resent the effects of five continuous days of demonstrations, blockades and widespread insecurity on the roads of Costa Rica.

Before the strike, which was started a few days ago by unions representing the country's public institutions, the Chamber of Exporters of Costa Rica (Cadexco) denounced the fact that companies in the sector are facing multiple difficulties in exporting their products. Puerto Moín, the main outlet for exports, is only operating six hours a day, leaving close to 12,000 tons per day unable to be shipped, which is estimated to be equivalent to almost $10 million in daily sales abroad.

More Costa Rican Investment in Nicaragua

September 2014

Investments by Costa Rican companies in their neighboring country went from $2.43 million in 2010 to $67.7 million in 2013.

Installation of production facilities, maquila subcontracts or transfer of part of the production process are part of the investment models that Costa Rican businessmen are utilizing in order to minimize the negative effects of the high production costs prevalent in Costa Rica and to stay competitive at the level international.

How to Win During the Crisis

June 2009

Even during a recession, there are many intelligent management strategies that are applicable to improve business competitiveness.

Times of crisis represent an excellent period in which to refocus on what our businesses do best, attract new clients, and build for the future.

Implementing Technology as a Response to the Crisis

June 2009

Although in these hard times the general tendency is to cut expenses in technology, investing intelligently in technology can be the solution.

Owners and intelligent managers are seeking information technologies and communications that aid their businesses´ need to connect to clients and improve client interactions so as to increase income and, fundamentally, reduce costs.

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