Management Information |
The Cheapest, Forget It !
Wouldn't it be great if we got get the cheapest price on everything. I know I wouldn't want it. Would you? Do you strive to get the cheapest automoblie? The cheapest mobile home to live in? The cheapest place to eat? Rather than look for the cheapest we tend to look for value for our money. We know we all work hard for our money and would like to be compensated if we are to give it up. The first thing a buyer should look for is if he's comparing apples with apples. Any person who's been to China lately can tell you that you can find a knockoof Louis Vitton handbag for $10.00, $20.00, $50.00 and $100.00. The $10.00 bag looks good from a distance but up close you can notice it's not a real one. The $20.00 bag looks real until you see the seems. The $40.00 bag looks perfect on the outside but the inside is noticeable different. Lastly, the $100.00 bag is an identical bag that can fool even workers at Louis Vitton. Secondly you should look for reliability. If you need the goods for a certain date and are saving 5% dealing with one questionnable supplier, think what would happen if they are late. If you run a sale on an item, advertise starting this date, and then not have the merchadise, think about the impact on your company. Your company's image is not viewed favourably, secondly the likelihood of this customer returning to your store for a future sale is unlikely and your advertising budget was wasted. Now how much was that 5% savings worth? Thirdly, look at indirect costs. My company Solutions Ink has set up many companies on our e-commerce ordering systems for printing and promotional products. A daily dreaded routine for most large companies is ordering business cards. The time to compile a list, fax or email, receive a proof, verify with the end user, return the proof or make changes on the proof, all takes considerable time. Along with this time the idea of maintaining a data base for future orders seems like a great idea which even speeds up the ordering process further. By giving our customers instant proofing we can save them hundred of hours annually. This is one direct cost savings not usually looked at, the other is that these employees can use their time more effectively to make their comapny's more efficient and economical. The smarter larger company's have realized this, now the middle size companies are coming on board. Another example of this are cellular phones or blackberries. The direct monthly cost of these items is certainly more than finding a public telephone and putting in a few coins or buying a calling card. However the reason most people use these items is that it saves us time, allowing us to multitask other items which are more beneficial to our companies. Fourthly, sometimes it's an emotional decision and not a purely financial one. If all companies looked only at the bottom line, no companies would have corporate suites, no executives would be driving luxury cars, their would be no Ritz Carlton Hotels, no luxury development or condominiums. If there would be none of these things life would be a lot less interesting. We could exist but not really live well. If you would like to know more about really helping your company drop me a note at steve@solutionsink4u.com. Steven Schneidman After completing a Masters in Business, teaching Finance at a University in Montreal and working at a large Canadian Bank, i have switched gears an owned 2 Printing and Promotional Product Companies. I help large and medium companies everyday achieve their goals.
MORE RESOURCES: Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting |
RELATED ARTICLES
Innovation Management: The Hype Cycle Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation. Just The Facts Attitudes are more important than facts. Dr. Solve Problems Permanently - Ask WHY As Albert Einstein said:-"The significant problems we face today, cannot be solved at the same level of thinking we were at when we created them."Problems don't go away unless you get to the cause - the source of them. Develop Your Managers and Keep Your Staff Following on from the last edition of The Organised Times where we spoke about developing the people in your business, this week we're focussing on the importance of the continual development of your managers.Leadership comes from the top down. Hire The Person, Not The Resume "? [get] the right people on the bus, the right people in the right seats (and the wrong people off the bus) and then [figure] out where to drive it." - Jim Collins - Good To Great"Hire the best staff you can find, develop them as much as you can, and hand off everything you possibly can to them. Your Appraisal System Can Be Better - Overcome These Nine Serious Failings This article is directed at senior managers. As a senior colleague you have the authority to make tremendous improvements. Understanding Every Aspect of Your Organization GET TO KNOW YOUR ORGANIZATION: If you don't understand an aspect of the organization or a procedure within it, ask. If you still don't understand, ask again. Sweet Parting Of Ways Why settle for bad feelings when your employee leaves the firm? Human resource managers can help to sweeten the occasion during the exit interview, and get valuable information to help the company in the new knowledge age.More often than not, human resource (HR) managers place more importance on job interviews than on exit interviews. Employee Retention: Five Leadership Fundamentals Are your management practices on the right track? Retaining your valued or high performing employees must be a strategic issue for your company. Throwing more money at your workers is not the answer and can become very costly. Implementing Change There are different reactions that individuals experience during time of change. Understanding the emotions of an individual may better help them get through the period of unexpected change. Tales From the Corporate Frontlines: Diversity in the Workplace: Ethnic Considerations This article relates to the Diversity in the Workplace Competency, commonly evaluated in employee satisfaction surveys. This competency explores whether your organization provides understanding and supports interaction among diverse population groups while respecting individuals' personal values and ideas. Eliminate Performance Anxiety Forever You've had many years of training in your craft as a performer, singer, actor etc. but if you still feel haunted by the ravages of Performance Anxiety your career may be in serious jeopardy. Tales From the Corporate Frontlines: Managerial Influence This article relates to the Manager/Supervisor competency, commonly evaluated in employee satisfaction surveys. This competency evaluates an employee's feelings regarding their direct manager or supervisor. Objects in the Mirror are Further Than They Appear Definition From http://www.merriamwebster. 5 Creative Evolutionary Leadership Niche Strategies! I have a short story to share with you about an importantskill many leaders need to develop, use and perfect.Life is a journey. Three Business Lessons From The US Postal Service There was a buzz in the air recently about the US Postal Service. Seems as though they were running into a budget deficit in the billions. Internal Communication: 12 Essential Elements There are 12 essential elements of a successful internal communications strategy:1. Effective employee-directed communications must be led from the top Effective communications require the active commitment and endorsement of senior managers. Invite Self-Managed Staff "Treat people as if they were what they ought to be, and you help them to become what they are capable of being." -GoetheTwo hundred years ago, Johann Wolfgang Goethe, German poet and philosopher, knew how to inspire and interact with others: recognize the best in them and act upon those positive expectations. Leadership Skill: How to Handle Difficult Conversations A good leader has the ability to empower others. It is important that a leader develop people who want to share and help in carrying out the goals of the organization. Hiring Productive Employees: A Checklist for Assessing Their Appeal The characteristics of job applicants have a strong influence on whether or not they get hired. Their characteristics also indicate the level of their productivity. |
home | site map | contact us |