Common Sense Profits, LLC

Cost Management

Managing costs in a business, obviously increases profits. However, which costs are managed are just as important.

There are two cost areas that allow a business to dominate its market.

(1) Reducing fixed recurring costs allows a business to hit annual profit targets sooner, to better weather economic variation, and in markets that are sensitive to prices, it can capture greater market share, which increases net profits.

(2) Increasing gross margins also allows a business to more rapidly hit annual profit targets sooner, while also allow more market share to be captured, in markets sensitive to price, and thus also increases net profits.

Improving cost structures in both (1) and (2), can accelerate a business’ growth and domination of its market.

Our cost management strategies focus on improving your business’ per unit profit margins, increasing capacity to better spread fixed costs, and various approaches to pricing that increase sales velocity, increase net profits, free up cash tied up in inventory or pre-paid operational services.