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Tips on controlling overhead Part 1

 

Let’s face it, no matter how great the service / construction markets are, it's still a rough ride; except for the eighties, the eighties were great...

 

Customers are looking for the best price around, suppliers are increasing freight charges, and your monthly gasoline bill can be downright scary.

 Like a truck, your business needs a specific amount of fuel (money) to run. And just like a truck, the heavier and more overloaded it is, the more fuel it will consume getting you where you want to go. 

The problem is fuel (money) can be hard to come by. If you want to keep your business rolling, you need to increase your miles-per-gallon, and the easiest way to do that is to shed some weight.

Some may argue that this is the wrong approach, instead, you need to increase margins and labor rates to match your overhead.

Really? That’s like saying it’s healthier to stay fat and buy bigger pants instead of losing weight.

 Sorry, but passing the effects of bloated overhead and ‘working stupid’ onto your customer really isn’t an option; at least not if you want to keep them as customers.

The best option is to shave off some overhead (bloat) and start working smarter; a lighter truck uses less fuel, right?

But before you get all crazy on slashing overhead you need to be sure you don’t slash your customer service along with it...unless you want to send your business into a death spiral.

You can cut overhead while actually increasing customer service (really, you can!)

We’re going to give you some money saving, service boosting ideas in upcoming articles, so be sure to check back soon.

Patrick