Part 1 of a 3 part series
- Increased selling expenses.
- Increased overhead expenses.
- Significant adverse deviations from budget.
- Significant increase in a particular line item’s cost.
Steps to Improve: CUTTING DISCRETIONARY SELLING & ADVERTISING EXPENSES
- Cut Overhead: It falls directly to the bottom line.
- Cut selling costs carefully in hard times – but don’t cut your throat.
- Advertising: Ask about rate cards/ discounts/ remainder and remnant space/ fillers/ other types of deals.
- Advertising: Per order and per inquiry deals.
- Advertising: Help if needed deals and guaranteed results deals.
- Advertising: Bulk purchase deals.
- Advertising and promotion: Cut carefully in hard times – but don’t cut your throat.
- Auto Expense: Monitor personal use of company cars.
- Auto Expense: Hire in-house mechanics to service vehicles and equipment.
- Commissions: Make payable on collection.
- Entertainment: Trim back entertainment expenses.