Enterprises Should Set Up Cost Consciousness

Where does profit come from? There are two aspects: increase income and reduce expenditure, increase income channels, control expenditure channels, and get higher net income.

Flow.

But it is easy to say "one by one", "one by one" or "one minus", but it is very difficult to operate.

According to Potter's theory, in the early stage of industrial development, the overall development level will have a certain distance from the industrial boundary, which means large market space.

At this stage, the primary task of the enterprise is to open up territory and expand the territory, seize the market blank points, set up the first mover advantage, and exchange the investment of people, money and goods in the continuous promotion of sales revenue and market share.

At this point, the importance of market development is far greater than the depth of market development, because large market demand can maintain the high speed of market development, while opportunities are fleeting.

Many Chinese enterprises are catching up with this opportunity to rise rapidly. The TCL with speed and impact is typical representative.

But when the industry is very close to the industrial boundary, the boundaries between industries begin to cross again.

The competition has been upgraded from the original horse racing enclosure to the tiger's mouth.

It used to be one point input and three points output. Now it is three points input and one output. Relying solely on the input of marketing resources has not produced the desired effect. Meticulous marketing is imperative.

Meticulous marketing is not only the intensive cultivation of marketing methods, but also the grasp of customer satisfaction and the insight of new consumption trends. It also includes detailed evaluation of input and output, effective control of sales cost and pursuit of high cost-effectiveness ratio. Cost control should become an important part of fine marketing.

Deming put forward comprehensive quality control in Japan and made Japan's industry after World War II.

Now, in the stage of meticulous marketing, the overall cost control that comes from the total quality control should also be mentioned in the attention of all departments of the enterprise.

In the past, the front-end and functional departments such as purchasing, production, finance and so on paid more attention to cost control, while sales departments were usually regarded as revenue generating departments, and their cost consciousness was not strong enough.

The direct result is that the resources obtained by the sales department are far greater than the resources obtained by the R & D and production sectors.

When competition is fierce, the malpractice of research and development is lagging behind, and the production technology is backward. The R & D and production departments can not form a strong support for sales.

This is the inevitable result of the sales department's purely revenue oriented. Only the sales department is guided by input and output, the cost control of the enterprise will achieve good results, and the resources of the enterprise can be more evenly distributed.

Overall cost control must be implemented in several aspects: first, the cost consciousness of the whole staff; the staff of the business department and functional department, the revenue generating department and the expenditure department must have the cost consciousness; two, the multi angle and all-round control of the cost should not only be reflected in the control of the internal management cost, but also on the control of the external sales cost, and at the same time, the more funds should be paid attention to, the financial cost should be controlled, and the financial leverage should be used well; three, we should avoid internal cost, light external cost, heavy direct cost and light indirect.

We should pay more attention to capital cost and time cost.

In particular, we should avoid such a misunderstanding: that is, as long as sales revenue goes up, how much money can be spent can lead to control over sales expenses and sensitivity to sales expenses, far less than control and sensitivity to financial expenses and office expenses.