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Examining Critical and Essential Expenses
By: Anthony Silvestri
Posted: April 29, 2011, from the May 2011 issue of Skin Inc. magazine.
page 2 of 2
Examples of essential expense reductions include the following:
- Reduce, eliminate or change services that are not profitable.
- Get competitive bids from various suppliers and let them know you are shopping around. This will trigger a competitive nature and produce the lowest costs for goods.
- Reduce waste in products used.
- Lease or buy used equipment with performance guarantees.
- Work with suppliers that will provide small minimum orders and rapid delivery when needed.
- Take advantage of sales and incentives to lower the cost of goods.
Establish the right atmosphere
Cost-cutting begins with the owner. If you are frugal with your spending, then you will establish the right atmosphere and change your business’s culture. People follow leaders.
Anthony Silvestri worked for Mario Tricoci for several years in many positions—most recently as operations coordinator. Before this position, he was a general manager and the management training coordinator for the company. One of Silvestri’s specialties is how to control operating income and controllable profit lines on profit and loss statements. He is currently the COO for Sella All Natural Skincare.