ER
IN THIS crisis era, it is very important for us to understand how to make savings in business. The goal is clear, so that our business can breathe longer. Don’t let any money go out for posts that actually need more pressure.
One thing that can be done is to save on fixed costs. Hey, who has forgotten the meaning of fixed costs? It’s normal, if it’s the same theory, yesterday I forgot, today I just don’t remember.
Fixed costs are costing whose amount does not change/fixed along with changes in the amount of production, for example the cost of renting a place of business, the cost of depreciation (depreciation) of production equipment, electricity costs (if the production process does not involve production equipment that requires a lot of electricity) or permanent employee costs. So, how do you reduce fixed costs?
1. Optimize the use of assets/ production tools
For example, optimizing the use of production equipment such as stoves, deep-fryer or coffee machines to their optimal limits before buying new equipment. Take into account how much capacity is in these devices when compared to consumer demand. This also means that we do not waste the existing production capacity. Because do not forget the means of production will charge costs in the form of depreciation costs.
2. Increase Sales/Production Quantity
The easy way to reduce fixed costs of course is to increase the quantity of sales/production. If the quantity increases, the proportion of fixed costs to total costs will decrease as the quantity increases. Now, how do we increase the quantity of sales? It’s good that we discuss this separately at length because it relates to marketing strategy and business development
3. Use Similar Types of Production Platforms
By having similar production equipment, such as the same stove or coffee machine, the spare parts or maintenance costs required are usually cheaper than having production equipment with the same purpose/output but with different specifications/types. It is also possible that the purchase price of the production equipment will be cheaper if we can plan the quantity requirements well.
4. Outsource Production on a per-Unit basis
If we can produce it ourselves, why should we buy it from someone else or outsource it? Eits make no mistake, this depends on the business strategy and also its main competence (core competence). If we can produce our own with better quality and cheaper price, so be it if that’s the strategy. But often the outsource strategy will have lower costs due to economies of scale.
For example, if we sell crispy tofu and the main competency/advantage of our product is the flour and the seasoning, we don’t have to make the tofu ourselves, we can outsource it by buying tofu from tofu craftsmen whose specifications are in accordance with what we want and it is very possible at a lower cost than we make the tofu ourselves, because craftsmen can produce in much larger quantities (economy of scale).
5. Analysis of Overall Costs Associated with the Use of Assets/Means of Production
So, if we buy production equipment, don’t be cheap, pay attention to the quality. It could be that we buy production equipment at a low price but in the end, we change parts more often or break down more often. This can result in the total cost that we actually spend more than if we buy a better production tool at a slightly more expensive price. [foodizz.id/photo special]
