Reduction of production expenses.

The questions resulted below can be used for the estimation of efficiency of efforts on reduction of expenses.

• Leasings payments Your company can to revise the terms of operating leasing agreement? Your company can to move in other building or apartment? Your company can to give part of the occupied area in a sublease? How more not advantageous than your company to buy a leasable apartment back?

• Communal payments  Your company can to enter more hard control after the consumption?

Your company can to inculcate more economical processes? Your company can to pass to the new terms of payment of public utilities?

Example: a company can settle on the accounts the bills of exchange, produced the producer of electric power. Usually such bills of exchange can be purchased with a discount.

• Repair and maintenance of equipment.

Your company can to set aside on the protracted or even short term some works on current maintenance of equipment?

How more not advantageous than company to give up services of contractors and repair an equipment, or companies, the forces it will be cheaper to hire the organization specialized for this purpose, if current service is carried out a company?A company can to agree with present contractors about an improvement in the benefit of conditions of the agreement about maintenance of equipment?A company can to find new service service providers?

• Integration and disintegration  A company can to reduce expenses due to vertical integration with suppliers or clients or due to horizontal integration with other producers? A company can to reduce expenses due to expansion of the business sphere on other links of production cycle, giving up a collaboration with contiguous? Or vice versa - a company is advantageous to narrow the production sphere, yielding to part of production cycle or byworks other producer?

 

Reduction of expenses on advertising of products

• Will revise the publicity budget:

Bring advertising an additional profit exceeding publicity expenses?  There is information confirmative, that the increase of expenses on advertising combines with the increase of volume of sales?

• Concentrate your publicity budget on the most effective types of advertising.

• Conduct negotiations with your advertising agency with the purpose of revision of conditions of the agreement in the best for you side. Otherwise find an advertising agency with more advantageous terms.

• Will study possibility of payment of publicity services by barter deals.

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Additional measures on the decline of expenses

whether a company.