Thought #5
Navigate in a rough sea
Thought #5-Navigate in a rough sea

The Scenario

It has not been the best year. New players have entered your market, many of your regular customers have left the country, remaining customers have became more price conscious and are looking for cheaper services that now are increasingly available.

The Issue

You are realising that you will have to reduce your prices to protect your sales, but having a relatively high cost structure you are afraid that your profits will be significantly impacted. Profits are the engine for your growth and you don’t want to see this happening.

The Action

To enable your company to remain competitive by further lowering your prices, without impacting your profits, you will need to fight the issue at the root and cut down on your costs. You could perform a “Costs Optimisation” exercise in order to identify opportunities for costs savings. Such an exercise involves the following activities:

  • Auditing all your categories of expenses (e.g. Utilities, Rental Agreements, Purchasing agreements, Compensation and Benefits etc.)
  • Benchmark spending on each category against your industry’s best practices
  • Identify potential improvement opportunities across each of these categories
  • Develop a business case for each of these opportunities
  • Prioritize and select which opportunities to implement
  • Implement by addressing effectively any change resistance without losing key talent

This is exactly how agga-consulting team can help you. In a simple, fast, affordable and highly practical manner we can help you to navigate in a rough sea.