Improve Your Ability to Manage Costs

• Growth in overhead costs
  Audio Tip: Cost Management and Overhead Costs
• Low Returns on Investment compared to industry competitors
  Audio Tip: Cost Management and Low Returns
• Stagnant or falling margins despite growth in the business
  Audio Tip: Cost Management and Stagnant Margins
• Lagging investment in new technologies
  Audio Tip: Cost Management and Technology Investment
• Slow adoption of new approaches to managing functional costs
  Audio Tip: Cost Management and New Functional Cost Approaches
• Inability to keep pace with product improvements for customers
  Audio Tip: Cost Management and Product Innovation
• Poor Economies of Scale
  Audio Tip: Cost Management and Economies of Scale

• Benchmark the cost structures of your best competitors
  
  • Financial gap: How much must you reduce cost to match them?
  • Rates and management approaches: Are they managing costs fundamentally differently?
  • Customer mix: Would a change in customers reduce your costs?

• Audio Tip: Benchmarking the Best Competitors

• Develop your own unique approaches to cost management
  
  • Typical costs: What costs does the typical business incur?
  • Cost Productivity: How do you measure cost productivity easily and practically?
  • Economies of Scale: Are unit costs declining over time?
  • Techniques: Can you use one or more of the four basic techniques to reduce costs?

• Audio Tip: Reducing the Unit Cost of a Product

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