Profit Growth
Profit Growth

Cost reduction reveals more net profit

23 January 2021

Adding more to the top of your company’s profit funnel does nothing to increase profit if variable costs increase in proportion.

Breakthrough profit growth occurs when you manage to widen the gap between new revenue and operating expenses.

We often find there’s a wealth of unnecessary expenses in your company that have evolved to be thought of as “the way we do business”.  But that’s unprofitable thinking.  

When you work with us, at the same time as we add more to the top of the funnel we will map the processes and assumptions in your key cost centres and design a programme of cost reduction.

That doesn’t mean that we will make wholesale changes to your company that would jeopardise your product or service delivery or negatively impact company culture (link to culture page).  Instead, led by an assumption that we can find ways to reduce operational costs, we will examine those processes with the greatest impact on the cost of operation, pull them apart and redesign them, or entirely remove them, while demonstrating that doing so will have a positive net effect on profit while a zero to positive effect on product/service delivery.

For example, in the past we have:

  • Changed warehousing procedures
  • Recruited new staff with particular process experience (who could bring new efficiencies to the warehouse), changed 
  • Dropped product and service lines that were unprofitable, redirecting operating capital behind more profitable lines
  • Changed administration processes to streamline customer service – increasing customer satisfaction and saving multiple FTE roles at once

Depending on your operation, we may draw in expertise from our consultant network and engage a cost reduction expert with particular experience in your industry or process-type.  We will remain as project manager and your key contact point at all times.

Would you like to know more about how we can help you retain more profit? Call us on 1300 36 20 27 or send a message from this page.

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