Originally Posted by
Justloadit
Knowing the actual hourly running cost of your company really makes you look at things differently, a meeting here, a phone call there, and all of a sudden you start thinking that this is now being unproductive, whilst I was on the phone with this customer who will never buy from me, just cost me X Rands. You start evaluating every action, to see if what you are about to do is going to cover that cost. Once you get this right, you will see basic improvements on your profit line, off course you must make sure about the collection of your money.
It also fine tunes the way you do business, it makes you sell more aggressively too, and many times takes out the emotional urge to give a discount because the customer asked.
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