Negotiating better deals on your raw materials or labor costs can greatly increase your profit margin. In this video, learn how to assign or hire a purchaser, or how to handle those dealings yourself.
- The next way that is well worth investigating … for saving money, is to be better at purchasing. … If you can save money on your purchasing, … that's straight on the bottom line. … So if you're spending 90 and you're selling it for 100, … you're making 10, if you can get that 90 down to 80, … by just buying stuff cheaper, that's instant profit, … you've doubled your profit. … And it's quite possible that if it's costing you 90, … you'll probably find that about 40 or 50 is labor, … and the other 40 or 50 is stuff that you buy in, … so to be better at purchasing … is really key in an organization, … and I've got a bit of an obsession … about centralized purchasing, … in that I don't like centralized purchasing. … And I want to tell you why that is, … cause in theory it would be a good idea, wouldn't it, … to have specialist purchasing people, … to bulk it all together, to have economies of scale, … but let me tell you why I think it's worth … being suspicious about centralized buying departments. …
- Different cost areas affecting your business
- Comparing cost vs. income
- Enhancing your work environment
- Focusing on the most important management tasks
- Getting better deals on raw materials and labor
- Recognizing your optimum quality level
- The hidden costs of subcontracting
- Where to avoid cutting costs
- Top ten cost-cutting actions to take
Skill Level Beginner
What to expect1m 3s
1. What to Reduce
2. Reducing Labor Costs
3. Costs Other Than People
4. Top 10 Tips
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