Dear All, Can anybody suggest me some effective cost cutting initiatives on admn front. Reards, Girish
From United States
2From United States
Hello friend,
You may like to consider following:
Before you see the list - you need to prepare a list of cost reduction areas - identify the expenses at todays level - prepare a PARETO CHART - that is the top 20% items which cost you 80% of your money and focus on these top 20% items first.
Wishing you best
regards
nishikant
From United States, Greensboro
You may like to consider following:
Before you see the list - you need to prepare a list of cost reduction areas - identify the expenses at todays level - prepare a PARETO CHART - that is the top 20% items which cost you 80% of your money and focus on these top 20% items first.
- Reduction of Use of company provided vehicles
- Reduce or eliminate Air Travel
- Reduce Communication Expenses - costly STD and International Calls
- Identify better plan from mobile service provider for Group - so that communication expenses can be reduced.
- Reduce expenses on stationary items - printing of calendars, diaries
- Remove all photocopying machines - there may be too muc paper and machine costs associated with this - go "paperless" at least as much possible.
- Reduce Gifts to employees and outside agencies like Govt Officials - at least reduce the amounts
- Reduce Hotel Expenses by cutting down on out station travel and resorting to telphonic - net meetings or Video Conferences
- If transport vehicles in the company - check fuel consumptions and improve fuel efficiencies
- Prepare a list of consumable items and bring a control through strict budgeting and cutting down to bare minimum.
- Strict control on parties and eliminate alcoholic drinks in parties.
- Monitor Energy Costs - electricity - eliminate wasteful use of air-conditioning and other equipment that consume lot of electricity - in case using air compressors for compressed air - this may be largest electricity consumption item - so make the system energy efficient and avoid waste
- Eliminate activities which are not adding value but you are paying for it - for example house keeping, gardening etc which you may be overdoing.
- Check maintenance costs and see how can these be reduced by 50% by preventive maintenace or " Maintenance Prevention"
- Reduce cost of security personnel by installing electronic security cameras - it will be one time cost - so may payback in a few months.
Wishing you best
regards
nishikant
From United States, Greensboro
hi Girish,
i am also working in the admin deptt of my company..... i also agree on the above said points by nishikant....
basic areas for cost reduction are:
1. printing & stationery
2. electricity
3. traveling
4. mobile and telephone bills.....
regards
Rupika
From India, Chandigarh
i am also working in the admin deptt of my company..... i also agree on the above said points by nishikant....
basic areas for cost reduction are:
1. printing & stationery
2. electricity
3. traveling
4. mobile and telephone bills.....
regards
Rupika
From India, Chandigarh
Another area of cost reduction would be hiring MULTI SKILLED & EFFICIENT EMPLOYEES who can take decisions on their own
From India, Chandigarh
From India, Chandigarh
another suggestion reg cost cutting
these days all are connected thru lotus notes etc and chatting is availble to all.
so encourage all to be online and chat for petty/small conversations rather than picking mobiles/phones. these is really useful for company with branches all india.
these days all are connected thru lotus notes etc and chatting is availble to all.
so encourage all to be online and chat for petty/small conversations rather than picking mobiles/phones. these is really useful for company with branches all india.
You all are aware about current Turmoil in the business globally. You also know that our company has taken series of steps to ensue that:
1. Our inventory is not blocked.(i.e., We should excess inventory)
2. Restriction on capital purchase and on new Recruitment of employee.
3. Strict control on Overtime and unwanted expenditure.
4. Employee output must be 100%.
5. Revision in Sales targets and steps to increase sale of Finished goods.
Keeping above points in mind, as an employee of this company we should immediately cut down our general expenses as under:-
A. 30% reduction in Mobile / Landline bill and courier charges.
B. 30% reduction in Vehicle Fuel charges and maintenance cost. (Employee should share the vehicles)
C. No purchase of writing pads and reuse of Stationery.
D. Switch off the Lights, computers, Fans, ACs, other electrical appliances when not in use.
E. Water Leakage, Gas Leakage, Spillage of Raw material, etc must be attended on priority.
F. Ensure that no overtime is done as far as possible.
G. Local visits by employee can be reduced by clubbing the activities.
The simplest ways to cut costs are the most practical ones. The lessons we learned from our Mom, but somehow forgot all about as we grew up. Well, it’s not too late to jog our memory, dust those mental cobwebs, and get our financial act together with these easy cost-cutting tips given below which I came across and thought of sending to you. Hope, some of these tips would be useful to you, also.
Lessons from Mom: 33 Easy Cost-Cutting Tips
1. A penny saved is a penny earned: Why did our mom place so much importance on our piggybank as we were growing up? Because money saved does grow, due to this magic fertilizer called compound interest. Mom’s recommendation - when our paycheck comes in, set up an automatic withdrawal from our checking account so that 10 percent is saved immediately. While the pinch may be felt for a few months, pretty soon it will be replaced by the bulge of the fattening savings account.
2. It’s wise to save for a rainy day: You’re in a good place right now, with a more-than-adequate income that keeps rising as you advance in your career, so what do you do? Raise your standard of living? No, not if you want to follow mom’s sage advice. A three percent annual increase in inflation will double your living costs in only 24 years. So let those extra dollars accumulate, beat inflation, and make sure you have a nice nest egg to fall back on when the cost of living surges upwards.
3. The first step is always the hardest: Yes, before you get down to some really heavy cost-saving measures, there’s the dreaded budget to set up. Mom would tell you put all your basic necessities first, your mortgage, food, clothing and utility expenses, transportation, children’s education. The non-essentials can be worked in after that based on the income you earn. List your recurring costs and one-off expenses, and most important, don’t forget to add that amount for pesky, unforeseen contingencies.
4. Don’t count your chickens before they hatch: Ok, here’s a vital aspect that needs to be taken seriously when preparing a budget, and mom will find it hard to forgive you if you forgot it. Never, ever take potential windfalls into consideration when calculating your monthly or annual income. Among the things you consciously ignore are that promised pay raise sometime in the next quarter, that inheritance from the filthily rich maiden aunt on her deathbed, tax refunds from the IRS, the proceeds from property you hope to sell for a fortune, gains due to investments in stocks or mutual funds, and well, you get my drift.
5. A rolling stone gathers no moss: This one’s for those of you who are bitten by the wanderlust bug. Changing jobs too often? Can’t seem to find that perfect home? Not decided where to plant roots and settle down? If so, mom would tell you that you need to get your act together and set up home somewhere permanent. Too many changes in lifestyle add to the dollars (rupees) spent unnecessarily.
6. There’s no place like home (and no food like home-cooked): Eating out or ordering in eats up a sizeable part of your income, without you being aware of it. The odd doughnut at the office, the takeout from the new Chinese deli that opened across the street, the chocolate bar and pretzel packet from the lobby vending machine ? they may not seem like large expenses, but they sure do add up when you tally them at the end of a month. Mom would be proud of you if you brushed up those cooking skills she taught you and put them to use when trying to cut costs. Home-cooked food is the cheapest and healthiest way to satisfy your hunger pangs.
7. Charity begins at home: Instead of going out to catch the new James Bond flick, stay in, and watch it on DVD, with snacks from your own larder, popcorn that’s fresh from your microwave, and lemonade chilled from the refrigerator. Mom would say you’ve achieved multiple savings with this move, from the movie tickets to the ridiculous cost of snacks at the multiplex theatres.
8. Penny wise and pound foolish: You’ve been a good boy and stayed true to your budget. No cups of coffee at Starbucks, no Diet Coke for lunch, no film glossy picked up at random at the corner newsstand, no pizza for dinner. Then bang, the bubble bursts, and mom’s not pleased with you. Why? Because you just blew the pennies you saved, and a lot more, on a vacation to Hawaii , just because an airline offered to fly you there at a discount. The amount you save is peanuts compared to the added expense of a vacation. For two steps forward, you’ve moved ten steps back.
9. It’s hard to teach an old dog new tricks: If you’re a family man, mom would look more kindly on you if you passed on her valuable pointers to your own brood right from the time they’re in diapers. It doesn’t make sense to ask your pre-teens out of the blue to curb his spending habits when they’re just discovering the wonderful things money can buy. What they don’t realize at that age is the not-so-wonderful consequences that arise when deep in debt. Children who are taught the value of money from a very early age will be an asset when you’re trying to stick to a budget, cut back on your expenditure, and get out of debt.
10. Don’t put off till tomorrow what you can do today: Mom would definitely not advocate procrastination when it came to paying bills and credit card balances. Every late payment translates into extra costs in terms of interest and penalties incurred.
11. An idle mind (and body) is the devil’s workshop: Remember when mom roped you in to help with her spring cleaning around the house? Well, she was just preparing you to mow your lawn, trim your hedges, vacuum your floors, wash your car, polish your windows ? in short, to take care of your own work. Paying someone to take over your chores may give you more time to relax, but it will also set you back financially.
12. Talk is NOT cheap: Mom may not have had the plethora of choices that telecommunications providers offer today, but she sure would know that talk is certainly not cheap. The glut of landlines, mobile phones, wireless devices and VoIP devices has only served to send the average American’s (Indian’s) phone bill sky-rocketing. Review all your options, eliminate redundant lines, try and take advantage of closed user groups that allow free calling between certain numbers, or be wise and use prepaid calling options.
13. A bird in the hand is worth two in the bush: While the benefits of credit cards cannot be denied, mom would be the first to remind you that you’re spending money that’s not yours in the first place each time your card is swiped. This means that the money is being loaned to you by the bank, which in turn means that you owe the institution some interest for providing you this service. When you use your credit card, ask yourself if you have the money in your account or if you are hoping it will get there before the month’s bill is due. If you’re not sure where the money’s coming from, use cash or a debit card. And if you don’t have either, don’t buy.
14. Neither a borrower nor a lender be: Credit cards were just making an appearance in mom’s day, but to see the way plastic has replaced cold cash today, and the plethora ofcredit card rewards programs out there, one would think they’ve been around forever. While it’s impossible to dream of a world free from credit cards, mom would say you can cut down the costs they throw up by paying your bill every month, by not using your credit card to withdraw money from the ATM, by staying within your credit limit, and by sticking to just ONE card, or if you absolutely have to, two. Set up a differentiating mark for expenses that need a credit card, and for those that don’t. Smaller amounts being paid with cards don’t add up as cost-cutting measures. Use your card only for purchases above certain amounts.
15. Planning makes perfect: Plan your weekly purchases, draw up lists, and most important, stick to them. Remember when you accompanied mom to the supermarket as a kid? No extra goodies in the basket, was her rule then, and it’s the same now, if you mean to cut down on your expenses. It’s simple? if it’s not on the list, don’t buy it, no matter how tempting it looks, no matter if it’s on sale, or no matter if it’s the last box on the shelf.
16. A fool and his money are soon parted: You may be all grown-up, but Mom would still like to restrict your television viewing and Internet surfing. Why? To prevent you from being enticed by those must-have gadgets and gizmos being advertised as the next best thing since sliced bread. Online and catalogue shopping sprees should be controlled when following a budget.
17. Share and share alike: Mom may have been really proud of you when you bought your first car, but now that she realizes how much gas it guzzles, she may rethink her approval. Save on gasoline and travel expenses, use car pools or take the public transport to and from work. Walk short distances, use bicycles for longer ones, you’ll not only save money, but also time spent in searching for parking space.
18. Many hands make light work: A budget is not just for the head of the family — all members must be roped in if it is to work effectively. If you remember the importance of teamwork taught by mom, you’ll pass it on effectively to your children.
19. Two is better than one: Doing things as a couple rather than as individuals helps save costs. For example, joint medical insurance is cheaper than insuring each one of you separately. If you asked mom for pointers, she would also recommend buying home and auto insurance from the same provider. You can save up to 15 percent, and even if you meet with an accident, they’re less likely to drop you since they would lose other businessas well.
20. Water, water everywhere, but not one drop being drunk: Why do you think mom asked you to drink a lot of water when you were a child? Because she knew colas would replace the natural thirst quencher as you grew up. She’d be the first to tell you that you can save a bundle on skipping the aerated drinks and sticking to plain old water or a home-made fruit juice to wash down your food.
21. Laugh and the whole world laughs with you, cry and you cry alone: If your mom warned you about fair-weather friends, you’ll know what I’m talking about. Don’t throw money around on parties and good times, especially when friends and acquaintances weasel their way out of chipping in. When you’re in a financial tight spot, these are the rats who are the first to desert the sinking ship.
22. What’s in a name? A rose by any other name would still smell as sweet: Carbolic soap was enough in mom’s day ? it got out the dirt if you scrubbed hard enough and kept the microbes at bay. No fancy brand names to contemplate and no fancy prices to pay either. Stay away from branded goods if you’re trying to cut costs; alternative generic products are just as good, you only have to take the trouble to look at the ingredients if it’s a shampoo or cosmetic, or the material if it’s a handbag or dress. The tag does not matter, only the price tag does.
23. A walk a day keeps the doctor (and medical expenses) away: Children need plenty of exercise, as mom would say, and so do adults. No, she wouldn’t recommend that you sign up for those workouts you never do at swanky gyms. Regular walks and jogs don’t cost you much, just a pair of sneakers, tracksuit, and a lot of breath. They also keep you from the doctor’s doors, saving you thousands in medical expenses.
24. Waste not, want not: Turning out a light as you leave a room may not seem like an expansive gesture, but it sure cuts down on your annual electricity bill. There are tons of other gadgets that, if used effectively, can bring down your utility expenses. Mom would recommend that you turn down the thermostat by two degrees, repair those leaky faucets on the double, use light bulbs that consume less power, clean heating and air vents regularly, and make sure that doors and windows are airtight.
25. Don’t try to keep up with the Joneses: Your neighbor just treated himself to a new plasma TV set, and you feel you’ve just got to have one too? Listen to the voice of your mom telling you to stop competing with the rest of the world. Instant gratification will lead to larger money problems in the future.
26. A chain is as strong as its weakest link: You’ve got all your family members hooked to the budget, well, all except one. Your teenager refuses to toe the line and insists she be allowed to spend as her friends do. Indulgent mom that you are, would you let her get away with this? Not if you followed what your mom taught you. One aberration in an otherwise strong chain is enough to shatter it to pieces. Make your family aware of the need for cooperation in planning for your future. Dangle a carrot on a stick, like the promise of a good college education, if she skimps today.
27. Don’t raid the cookie jar: Ever been rapped on the knuckles for dipping into the cookie jar? Well, now the jar is serving another purpose ? to hold all your loose change and the odd dollar or two. Each day, turn out your pockets and put the coins in the jar. You’ll be surprised at the amount you manage to save ? most families use this money for a special treat. Did you just see mom beam a smile of approval?
28. Big is beautiful: Buy in bulk. The larger cartons are always worth more than the smaller ones. Mom would say that this also saves you the trouble and expense of returning to the store when you run out.
29. Read the fine print before you sign the dotted line: Paying that bill due to the phone company or the bank? Read it carefully to see if they’re charging for services you don’t really need or use. This is where mom’s advice to read before you sign comes in handy.
30. Time is money: Christmas and birthdays demand presents, but when you’re trying to cut costs, it just doesn’t help to spend on others. But how do you show your loved ones that you do remember their special day and wish to commemorate it with something worthwhile? Ask mom, and she would say that spending time with them doing the things they love is just as good as, if not better than a tangible gift.
31. Watch and weigh your purchases: Before you buy anything, even the most insignificant item, think not once nor twice, but till you are convinced that the purchase is absolutely necessary. As mom would say? want? is not the same as? need? If it’s just want, then take it out of your cart, if it’s need, it makes its way to your home.
32. Small drops of water make up the mighty ocean: No amount is too small, not when you’re trying to cut costs. A saving of $10 a day will go a long way in reducing your debts. Chipping away at your debts and expenses little by little is a slow but steady way to take control over your financial life, and mom would surely approve.
33. If at first you don’t succeed, try, try again: There may be times when you are not able to stick to the budget plans you so carefully drew up. Fear not, mom’s not going to be disappointed with you if you do stray off the straight and narrow path, not as long as you try to return and follow it faithfully.
Cutting back on expenses is like trying to lose weight, it’s hard to shake off that first pound, but once you get going, it gets easier with every step you take. One eating binge should not set you back, nor should the fact that the rest of the world seems to feasting while you are starving. Remember, use the ultimate goal as an incentive to keep you going, a figure to die for, or a debt-free existence with the promise of a secure future.
From India, Pune
1. Our inventory is not blocked.(i.e., We should excess inventory)
2. Restriction on capital purchase and on new Recruitment of employee.
3. Strict control on Overtime and unwanted expenditure.
4. Employee output must be 100%.
5. Revision in Sales targets and steps to increase sale of Finished goods.
Keeping above points in mind, as an employee of this company we should immediately cut down our general expenses as under:-
A. 30% reduction in Mobile / Landline bill and courier charges.
B. 30% reduction in Vehicle Fuel charges and maintenance cost. (Employee should share the vehicles)
C. No purchase of writing pads and reuse of Stationery.
D. Switch off the Lights, computers, Fans, ACs, other electrical appliances when not in use.
E. Water Leakage, Gas Leakage, Spillage of Raw material, etc must be attended on priority.
F. Ensure that no overtime is done as far as possible.
G. Local visits by employee can be reduced by clubbing the activities.
The simplest ways to cut costs are the most practical ones. The lessons we learned from our Mom, but somehow forgot all about as we grew up. Well, it’s not too late to jog our memory, dust those mental cobwebs, and get our financial act together with these easy cost-cutting tips given below which I came across and thought of sending to you. Hope, some of these tips would be useful to you, also.
Lessons from Mom: 33 Easy Cost-Cutting Tips
1. A penny saved is a penny earned: Why did our mom place so much importance on our piggybank as we were growing up? Because money saved does grow, due to this magic fertilizer called compound interest. Mom’s recommendation - when our paycheck comes in, set up an automatic withdrawal from our checking account so that 10 percent is saved immediately. While the pinch may be felt for a few months, pretty soon it will be replaced by the bulge of the fattening savings account.
2. It’s wise to save for a rainy day: You’re in a good place right now, with a more-than-adequate income that keeps rising as you advance in your career, so what do you do? Raise your standard of living? No, not if you want to follow mom’s sage advice. A three percent annual increase in inflation will double your living costs in only 24 years. So let those extra dollars accumulate, beat inflation, and make sure you have a nice nest egg to fall back on when the cost of living surges upwards.
3. The first step is always the hardest: Yes, before you get down to some really heavy cost-saving measures, there’s the dreaded budget to set up. Mom would tell you put all your basic necessities first, your mortgage, food, clothing and utility expenses, transportation, children’s education. The non-essentials can be worked in after that based on the income you earn. List your recurring costs and one-off expenses, and most important, don’t forget to add that amount for pesky, unforeseen contingencies.
4. Don’t count your chickens before they hatch: Ok, here’s a vital aspect that needs to be taken seriously when preparing a budget, and mom will find it hard to forgive you if you forgot it. Never, ever take potential windfalls into consideration when calculating your monthly or annual income. Among the things you consciously ignore are that promised pay raise sometime in the next quarter, that inheritance from the filthily rich maiden aunt on her deathbed, tax refunds from the IRS, the proceeds from property you hope to sell for a fortune, gains due to investments in stocks or mutual funds, and well, you get my drift.
5. A rolling stone gathers no moss: This one’s for those of you who are bitten by the wanderlust bug. Changing jobs too often? Can’t seem to find that perfect home? Not decided where to plant roots and settle down? If so, mom would tell you that you need to get your act together and set up home somewhere permanent. Too many changes in lifestyle add to the dollars (rupees) spent unnecessarily.
6. There’s no place like home (and no food like home-cooked): Eating out or ordering in eats up a sizeable part of your income, without you being aware of it. The odd doughnut at the office, the takeout from the new Chinese deli that opened across the street, the chocolate bar and pretzel packet from the lobby vending machine ? they may not seem like large expenses, but they sure do add up when you tally them at the end of a month. Mom would be proud of you if you brushed up those cooking skills she taught you and put them to use when trying to cut costs. Home-cooked food is the cheapest and healthiest way to satisfy your hunger pangs.
7. Charity begins at home: Instead of going out to catch the new James Bond flick, stay in, and watch it on DVD, with snacks from your own larder, popcorn that’s fresh from your microwave, and lemonade chilled from the refrigerator. Mom would say you’ve achieved multiple savings with this move, from the movie tickets to the ridiculous cost of snacks at the multiplex theatres.
8. Penny wise and pound foolish: You’ve been a good boy and stayed true to your budget. No cups of coffee at Starbucks, no Diet Coke for lunch, no film glossy picked up at random at the corner newsstand, no pizza for dinner. Then bang, the bubble bursts, and mom’s not pleased with you. Why? Because you just blew the pennies you saved, and a lot more, on a vacation to Hawaii , just because an airline offered to fly you there at a discount. The amount you save is peanuts compared to the added expense of a vacation. For two steps forward, you’ve moved ten steps back.
9. It’s hard to teach an old dog new tricks: If you’re a family man, mom would look more kindly on you if you passed on her valuable pointers to your own brood right from the time they’re in diapers. It doesn’t make sense to ask your pre-teens out of the blue to curb his spending habits when they’re just discovering the wonderful things money can buy. What they don’t realize at that age is the not-so-wonderful consequences that arise when deep in debt. Children who are taught the value of money from a very early age will be an asset when you’re trying to stick to a budget, cut back on your expenditure, and get out of debt.
10. Don’t put off till tomorrow what you can do today: Mom would definitely not advocate procrastination when it came to paying bills and credit card balances. Every late payment translates into extra costs in terms of interest and penalties incurred.
11. An idle mind (and body) is the devil’s workshop: Remember when mom roped you in to help with her spring cleaning around the house? Well, she was just preparing you to mow your lawn, trim your hedges, vacuum your floors, wash your car, polish your windows ? in short, to take care of your own work. Paying someone to take over your chores may give you more time to relax, but it will also set you back financially.
12. Talk is NOT cheap: Mom may not have had the plethora of choices that telecommunications providers offer today, but she sure would know that talk is certainly not cheap. The glut of landlines, mobile phones, wireless devices and VoIP devices has only served to send the average American’s (Indian’s) phone bill sky-rocketing. Review all your options, eliminate redundant lines, try and take advantage of closed user groups that allow free calling between certain numbers, or be wise and use prepaid calling options.
13. A bird in the hand is worth two in the bush: While the benefits of credit cards cannot be denied, mom would be the first to remind you that you’re spending money that’s not yours in the first place each time your card is swiped. This means that the money is being loaned to you by the bank, which in turn means that you owe the institution some interest for providing you this service. When you use your credit card, ask yourself if you have the money in your account or if you are hoping it will get there before the month’s bill is due. If you’re not sure where the money’s coming from, use cash or a debit card. And if you don’t have either, don’t buy.
14. Neither a borrower nor a lender be: Credit cards were just making an appearance in mom’s day, but to see the way plastic has replaced cold cash today, and the plethora ofcredit card rewards programs out there, one would think they’ve been around forever. While it’s impossible to dream of a world free from credit cards, mom would say you can cut down the costs they throw up by paying your bill every month, by not using your credit card to withdraw money from the ATM, by staying within your credit limit, and by sticking to just ONE card, or if you absolutely have to, two. Set up a differentiating mark for expenses that need a credit card, and for those that don’t. Smaller amounts being paid with cards don’t add up as cost-cutting measures. Use your card only for purchases above certain amounts.
15. Planning makes perfect: Plan your weekly purchases, draw up lists, and most important, stick to them. Remember when you accompanied mom to the supermarket as a kid? No extra goodies in the basket, was her rule then, and it’s the same now, if you mean to cut down on your expenses. It’s simple? if it’s not on the list, don’t buy it, no matter how tempting it looks, no matter if it’s on sale, or no matter if it’s the last box on the shelf.
16. A fool and his money are soon parted: You may be all grown-up, but Mom would still like to restrict your television viewing and Internet surfing. Why? To prevent you from being enticed by those must-have gadgets and gizmos being advertised as the next best thing since sliced bread. Online and catalogue shopping sprees should be controlled when following a budget.
17. Share and share alike: Mom may have been really proud of you when you bought your first car, but now that she realizes how much gas it guzzles, she may rethink her approval. Save on gasoline and travel expenses, use car pools or take the public transport to and from work. Walk short distances, use bicycles for longer ones, you’ll not only save money, but also time spent in searching for parking space.
18. Many hands make light work: A budget is not just for the head of the family — all members must be roped in if it is to work effectively. If you remember the importance of teamwork taught by mom, you’ll pass it on effectively to your children.
19. Two is better than one: Doing things as a couple rather than as individuals helps save costs. For example, joint medical insurance is cheaper than insuring each one of you separately. If you asked mom for pointers, she would also recommend buying home and auto insurance from the same provider. You can save up to 15 percent, and even if you meet with an accident, they’re less likely to drop you since they would lose other businessas well.
20. Water, water everywhere, but not one drop being drunk: Why do you think mom asked you to drink a lot of water when you were a child? Because she knew colas would replace the natural thirst quencher as you grew up. She’d be the first to tell you that you can save a bundle on skipping the aerated drinks and sticking to plain old water or a home-made fruit juice to wash down your food.
21. Laugh and the whole world laughs with you, cry and you cry alone: If your mom warned you about fair-weather friends, you’ll know what I’m talking about. Don’t throw money around on parties and good times, especially when friends and acquaintances weasel their way out of chipping in. When you’re in a financial tight spot, these are the rats who are the first to desert the sinking ship.
22. What’s in a name? A rose by any other name would still smell as sweet: Carbolic soap was enough in mom’s day ? it got out the dirt if you scrubbed hard enough and kept the microbes at bay. No fancy brand names to contemplate and no fancy prices to pay either. Stay away from branded goods if you’re trying to cut costs; alternative generic products are just as good, you only have to take the trouble to look at the ingredients if it’s a shampoo or cosmetic, or the material if it’s a handbag or dress. The tag does not matter, only the price tag does.
23. A walk a day keeps the doctor (and medical expenses) away: Children need plenty of exercise, as mom would say, and so do adults. No, she wouldn’t recommend that you sign up for those workouts you never do at swanky gyms. Regular walks and jogs don’t cost you much, just a pair of sneakers, tracksuit, and a lot of breath. They also keep you from the doctor’s doors, saving you thousands in medical expenses.
24. Waste not, want not: Turning out a light as you leave a room may not seem like an expansive gesture, but it sure cuts down on your annual electricity bill. There are tons of other gadgets that, if used effectively, can bring down your utility expenses. Mom would recommend that you turn down the thermostat by two degrees, repair those leaky faucets on the double, use light bulbs that consume less power, clean heating and air vents regularly, and make sure that doors and windows are airtight.
25. Don’t try to keep up with the Joneses: Your neighbor just treated himself to a new plasma TV set, and you feel you’ve just got to have one too? Listen to the voice of your mom telling you to stop competing with the rest of the world. Instant gratification will lead to larger money problems in the future.
26. A chain is as strong as its weakest link: You’ve got all your family members hooked to the budget, well, all except one. Your teenager refuses to toe the line and insists she be allowed to spend as her friends do. Indulgent mom that you are, would you let her get away with this? Not if you followed what your mom taught you. One aberration in an otherwise strong chain is enough to shatter it to pieces. Make your family aware of the need for cooperation in planning for your future. Dangle a carrot on a stick, like the promise of a good college education, if she skimps today.
27. Don’t raid the cookie jar: Ever been rapped on the knuckles for dipping into the cookie jar? Well, now the jar is serving another purpose ? to hold all your loose change and the odd dollar or two. Each day, turn out your pockets and put the coins in the jar. You’ll be surprised at the amount you manage to save ? most families use this money for a special treat. Did you just see mom beam a smile of approval?
28. Big is beautiful: Buy in bulk. The larger cartons are always worth more than the smaller ones. Mom would say that this also saves you the trouble and expense of returning to the store when you run out.
29. Read the fine print before you sign the dotted line: Paying that bill due to the phone company or the bank? Read it carefully to see if they’re charging for services you don’t really need or use. This is where mom’s advice to read before you sign comes in handy.
30. Time is money: Christmas and birthdays demand presents, but when you’re trying to cut costs, it just doesn’t help to spend on others. But how do you show your loved ones that you do remember their special day and wish to commemorate it with something worthwhile? Ask mom, and she would say that spending time with them doing the things they love is just as good as, if not better than a tangible gift.
31. Watch and weigh your purchases: Before you buy anything, even the most insignificant item, think not once nor twice, but till you are convinced that the purchase is absolutely necessary. As mom would say? want? is not the same as? need? If it’s just want, then take it out of your cart, if it’s need, it makes its way to your home.
32. Small drops of water make up the mighty ocean: No amount is too small, not when you’re trying to cut costs. A saving of $10 a day will go a long way in reducing your debts. Chipping away at your debts and expenses little by little is a slow but steady way to take control over your financial life, and mom would surely approve.
33. If at first you don’t succeed, try, try again: There may be times when you are not able to stick to the budget plans you so carefully drew up. Fear not, mom’s not going to be disappointed with you if you do stray off the straight and narrow path, not as long as you try to return and follow it faithfully.
Cutting back on expenses is like trying to lose weight, it’s hard to shake off that first pound, but once you get going, it gets easier with every step you take. One eating binge should not set you back, nor should the fact that the rest of the world seems to feasting while you are starving. Remember, use the ultimate goal as an incentive to keep you going, a figure to die for, or a debt-free existence with the promise of a secure future.
From India, Pune
ask every dept or process head to reduce headcount by 10%expenses by 10%if it doesnt affect the cos adversely, move in for a second round of 10% cuts and then third and so on.people will be forced to reengineer processes etc.
From India, Delhi
From India, Delhi
there can be more
man power planning
cut on labour costs
more empowerment and reduction of reduction of redundant employees
removal of non performers
link salary with performance/results
are a few
thank u
From India, Madras
man power planning
cut on labour costs
more empowerment and reduction of reduction of redundant employees
removal of non performers
link salary with performance/results
are a few
thank u
From India, Madras
COST CUTTING
1. Employees should be offered ONLY cutting tea to reduce budget in the office,
2. Employee should be reimbursed public transport and encourage use public transport.
3. Employees should consume their leaves, no encashment or accumulations for next 12 months.
4. Employees free lunch/meal or subsidies lunch facility should be withdrawn.
5. Employee should bring overnight remaining stale food stuff to be fried and served as breakfast in office.
6. Employee not to use intercom but communicate with gesture to reduce physical exertions.
7. Employee should encourage keeping fast three days in week.
8. Employee must be encouraged to go to bed early to save electricity.
9. No use of Air-condition/fan in the office, use hand driven fans instead
10. Office should be shifted to open space for free natural light and fresh air its good for health.
11. No telephone communication, only use chatting for outdoor communication.
12. No peons allowed every employee shall manage his files and movement of files her/himself.
13. Executives shall not be eligible for formal attire, instead of coat and suit they should be given raincoats.
14. Staff Employee should wear half uniform- Shorts and Barbuda etc.
15. Employee basic salary to be reduced by 25% as discounted salary for recession sacrifice.
From Saudi Arabia
1. Employees should be offered ONLY cutting tea to reduce budget in the office,
2. Employee should be reimbursed public transport and encourage use public transport.
3. Employees should consume their leaves, no encashment or accumulations for next 12 months.
4. Employees free lunch/meal or subsidies lunch facility should be withdrawn.
5. Employee should bring overnight remaining stale food stuff to be fried and served as breakfast in office.
6. Employee not to use intercom but communicate with gesture to reduce physical exertions.
7. Employee should encourage keeping fast three days in week.
8. Employee must be encouraged to go to bed early to save electricity.
9. No use of Air-condition/fan in the office, use hand driven fans instead
10. Office should be shifted to open space for free natural light and fresh air its good for health.
11. No telephone communication, only use chatting for outdoor communication.
12. No peons allowed every employee shall manage his files and movement of files her/himself.
13. Executives shall not be eligible for formal attire, instead of coat and suit they should be given raincoats.
14. Staff Employee should wear half uniform- Shorts and Barbuda etc.
15. Employee basic salary to be reduced by 25% as discounted salary for recession sacrifice.
From Saudi Arabia
very nice
well today time of recession & financial crisis
axe have been fallen on many employees in the organisation
well i am also working as a admin
well the security point is really true bcz heavy exp have been paid on security and house keeping
rgds
sunil
and once again thanks buddy
From India, Vadodara
well today time of recession & financial crisis
axe have been fallen on many employees in the organisation
well i am also working as a admin
well the security point is really true bcz heavy exp have been paid on security and house keeping
rgds
sunil
and once again thanks buddy
From India, Vadodara
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COST CUTTING STRATEGY Nov 07.pdf