Tag Archives: labor cost

Understanding and managing product costs is one of the most challenging – and critical – responsibilities of small manufacturing business owners. This article offers common sense, achievable advice for taking control of costs and profitability. Continue reading

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All business owners must differentiate or compete on price, but the stakes are much higher for designer businesses. Differentiation on design is the primary argument for maintaining higher prices, and failure to do so undermines the entire business premise. Do you know which questions to ask when establishing your pricing strategy? Continue reading

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I invite you to ponder two thoughts over the weekend. I’d like you to think about the effects of fear, and the benefits of action. Continue reading

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Supply Chain Management represents the best opportunity to maintain your footing in a difficult economy. Buyers have particular responsibility related to high volume/high profit potential products. If any product is responsible for a significant percentage of the firm or division’s profitability, it is not enough to make sure the product or its components arrive on time and are of acceptable quality. It is also important to understand the manufacturing process related to that product, the market conditions affecting the components of that product, and the vendor’s ability to manage those manufacturing and market conditions.

Beyond those obvious high-focus products, where is the next best place for a buyer to focus their attention? On products where the labor cost is a high percentage of total cost. Why is this so important? Because your opportunities to work on productivity improvements with vendors are very high on these products. Continue reading

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