The Cost That Enterprises Can Not Easily Cut Down

More rationality is needed for cost management, and we should learn to treat the cost dialectically and find out which costs should be cut down, which can be reduced, which costs should not be cut down, and can not be cut down, or even not cut down, but also to raise costs.

In order to find out whether certain costs should be cut down, we must first clarify the following two points:

In addition to having the same cost content with other enterprises, each enterprise has its own specific cost content. That is to say, each enterprise has allocated different specific cost contents according to the way the enterprise seeks profit.

You can understand that for the same.

In this enterprise, it is abnormal cost that should be cut down. In another enterprise, it is a normal cost and must not be cut down.

For example, some enterprises increase the number of employees as abnormal costs, take the direct cut down recruitment plan, cut down the cost of employment of recruiters, and even reduce the operating costs through layoffs; while others need to increase the number of employees, and include the recruitment costs and the additional expenses added to new employees as necessary costs, and sometimes even raise wages, benefits and other remuneration costs.

The same enterprise often determines the specific stage cost content according to the development process of the enterprise.

This is often the case. At this stage, it is a normal cost expenditure. It should never be cut down. At another stage, it is an abnormal cost which must be cut down.

For example, in the early stage of product launch, advertising cost is very necessary. It should not be cut down. Instead, it needs to increase the cost of advertising frequently. When a product becomes a brand product or a star product, it should cut down part of the advertising cost or reduce the cost of advertising in some aspect.

After understanding the above two points, we will understand that people who cut off the cost by people who follow the rules of others, often get stuck in the wrong area of cost management.

Cutting costs has always been a hot topic and thorny issue of enterprise cost management, so there are many books and magazines on cost cutting in the market. These books and magazines have explored various theories and effective measures of cost management. There are also more experts in cost management in society. These experts have put forward many good ways to reduce costs. All of these are worth learning and learning from, but there is a very important point. I must point out that although learning and drawing lessons are good, we must not be obsessed with temptation, nor can we apply mechanically, but to learn and use them more effectively.

To speak plainly, on the one hand, we should learn how to cut costs, and on the other hand, we should stick to those costs that should not be cut down according to the actual conditions of our enterprises.

Having said so much, what costs should not be cut down?

It must be unreliable to tell which specific costs should be cut off. It is generally believed that such costs should not be cut off, such as sales expenses, equipment pformation, product development, staff training, salary and welfare, because these are the basic costs to ensure the profit and basic operation of an enterprise. As an enterprise, if it is necessary to cut down these costs, it is not as appropriate to directly turn off the enterprises. Of course, the specific costs to a certain enterprise should not be cut down.

这里需要特别指出，也许很多老板都认为销售费用，是企业很大的成本负担，从而片面认为销售费用必须砍掉，这种观点是不全面的，老板们除了考虑花费了多少销售费用，更应该分析花费这些销售费用带来了多少销售额，产生了多少直接利润，未来还能带来多大的销售额和潜在利润，因为很多时候销售费用产生的效果不是表现在当前，或者不是全部表现在当前，如果站在花费销售费用的当时，来看待投入产出效果，经常不是十分明显，因为效果和利润相对于成本开支是滞后的，还有销售是企业产品的出口，是距离企业利润最近的环节，也是企业增加、盘活现金流的重要端口，要是因砍掉销售费用带来的销售不畅，造成的库存积压和资金紧张，那才是真正最大的成本支出，因此在对待销售成本上，老板们不能一叶障目，要看投入，更看产出，看眼前，更兼顾未来，

Scientific, comprehensive, long-term and dynamic analysis can not cut down the cost of sales at will.

And cutting down some cost items at will, and ultimately cutting the cost, will eventually kill the enterprise. So how can we talk about the development and profit of the enterprise? I am afraid that only the bankruptcy has been made. It must be clear that the standard of evaluating an enterprise is not the cost level, but the profit level, the profitability and the development potential. Therefore, the bosses should not put too much energy into how to cut down the cost. Instead, we should put more energy on how to maximize profits, improve profitability and enhance the development potential, so we must not commit a naive illness in the management of enterprise development. In terms of cost management, if an enterprise disregards the actual situation of the enterprise, in order to reduce the overall cost of the enterprise.

To sum up, in the cost management, the dispensable cost must be cut down, but the more cost can be less, and the cost of maintaining the basic operation of the enterprise, developing the market and increasing profits is absolutely not to be cut down.

If the cost is cut down arbitrarily, the profit will be reduced and the profitability will be reduced.