Proper Cost Management

Macroeconomic instability and lack of certainty over the variables that affect the production and marketing of goods and services, make it crucial to have excellent cost control.

Monday, February 25, 2013

An analysis on the subject is provided by Otto Stecher, Director of Business Outsourcing Services at Deloitte, detailing the particular situation of Costa Rica's economy and its impact on business, which can be extrapolated to any company in the region.

"... Cost management remains the vertical column to the survival and growth of enterprises. We must not focus solely on the macroeconomic changes, we visualize what we can do internally in our companies. Ask yourself the following questions:

1. Do I have a pricing strategy for my products or services according to the market?
2. Am I aware of how much I'm losing with certain products and when I am ceasing to make a profit?
3. Do I have some idea of how much "fat" does my company have, can I optimize it, and make it a more competitive?
4. Do I have a plan for improvement and mitigation to maintain profitability or improve it?

"... The worst thing we can do at this time, under the current world situation, is go into "paralysis". Far from it, we should be dynamic and look for opportunities.

More on this topic

Competitiveness and Devaluation

July 2019

In a competitive scenario for lower costs and higher productivity, devaluation against the Lempira Dollar in Honduras and the Cordoba Dollar in Nicaragua is a factor that could help these economies stay competitive.

In the last five years, the exchange rate in Honduras increased by 17%, from 21.06 Lempiras per U.S.

Costa Rica: Central Bank will Not Change its Exchange Rate Policy

October 2016

Despite constant complaints from the export sector, the Central Bank has been clear that devaluing the Colon against the dollar would mean a reversal of the exchange rate policy.

The insistence with which exporters and tourism entrepreneurs have raised the need to depreciate the Costa Rican currency to recover some of the lost competitiveness in the external field was not enough to change the opinion of the monetary authority.

Price Management vs Profitability

June 2016

The answer to how often any of these ten situations occur in your sales department is a good way to diagnose the health of your business.

1) "It's very difficult to sell at these prices, this is the biggest complaint in relation to sales." Vendors argue that the company's prices are a major obstacle to making progress in the market.

Costa Rica and the Exchange Rate Dilemma

May 2016

Businesses in the tourism and export sectors are insisting on the need to revise the exchange rate policy in order to recover part of the competitiveness lost in recent years.

While on one side of the fence exporters and tourism companies are asking to change the way in which the exchange rate is managed in order to improve their competitiveness, on the side are the companies and sectors that have benefited not only from the stability shown by the price of the dollar in the country but also from cheap imports.

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