There are a myriad of possibilities in conventional cost reduction. Some of them were already discussed on this blog. In spite of the fact that impressive savings are possible when you use these methods, even larger economies are possible.

The biggest gains are possible when you think outside of the box. As crazy or difficult as it may seem at first, try to convert costs into profits. Let your customers do the work themselves. Numerous successful examples exist, and even entire business models were based on this approach.

For supermarkets, personnel wages are an important cost pool. Cut these costs and you’ll see the impact on overall profitability immediately. You can’t just reduce the number of cashiers. Self-scan checkout systems, such as the one on the photo, allow customers to do the jobs themselves. Because the space which used to have only 1 cashier, can now hold 2 to 6 cashiers, the time customers have to wait in line is reduced. Some customers also prefer the privacy they have while checking out.

Probably the most famous example is the Swedish furniture retailer IKEA. Since most people tend to value money more than time, they let them do the assembly in return for cheaper prices.

One of the biggest costs for cruise ships is the cleaning of the cabins. Some companies got rid of their cabin cleaning subcontractors. Instead, they have a small amount of passengers pay for the ‘franchise’ to clean a certain number of cabins. It is important that SLA’s are discussed and verified, to keep quality under control. The passengers which clean the rooms get to keep the tips they receive, and can earn ‘pocket money’ for miscellaneous personal spending while on the cruise.

Categories : Advices | Tags : General expenses | 0 commentaire associé