Selling Expenses (1 of 3): Cutting Discretionary Selling & Advertising Expenses - John M. Leask II CPA/ABV, CVA

Selling Expense

Part 1 of a 3 part series

Warning Signs:

    • 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.

Back to The Business Doctor

>>Selling Expenses (1 of 3): Cutting Discretionary Selling & Advertising Expenses
>>Selling Expenses (2 of 3): More Efficient Marketing
>>Selling Expenses (3 of 3): Cutting Travel Costs