Today, the traditional profit model construction machinery industry has been to subvert the power of the market downturn, the original cost center into a profit center the sudden, sharp drop in profitability. Survey shows that more than 70% of the primary task at this stage is to ensure the survival of the agents, cut costs, reduce operating costs, but to achieve "reduce operating costs," we need to establish a new spending habits.

A corporate cost center Where

In a business full-year 2014 data, for example (Table 1), the analysis fee structure, seeking to reduce the costs of measures.

2014 full-year data

By analyzing the cost structure of these companies is not difficult to find:

First, the whole promotional costs, staff wages, commission bonus, the show costs, travel costs of the top five centers, the total cost of 69.77%, from a management perspective, the cost of the above five, each one has a compressible space.

Second, in the above-mentioned five major costs, staff salaries, travel expenses are fixed costs, accounting for 29.3%, the whole promotional costs, royalties, bonuses, exhibition costs were changes in costs, accounting for 70.7%, changes in the cost of a relatively large space can be cut .

Second, how to compress costs

Based on the above analysis, the five largest corporate cost center to proceed, take effective measures to compress costs, respectively, as follows:

Machine promotional costs

In the whole promotional costs, the cost is greater gift accessories, gifts, used car trade business losses, etc., based on customer development practices presented below prevailing rules industry, is what makes sense, but in practice, often found Many customers pay more attention to the timeliness of service and repair rate is not the decisive factor in whether the deal presented influence business people face such customers, should cost point of view, improve customer service quality in the more efforts to gradually reduce gift items amount.

For replacement business is the development trend of history can not be changed, after all, the stock more and more customers, more and more corporate customers, there are many requirements in terms of the value of the old machine, the reality is very cruel trade machine losses, but have to face, But in the whole marketing costs, reality or together with the customer service staff fraud behavior, which is the management of breakthrough, many offices and headquarters are far away, the company gave a lot of business people decentralization, monitoring is not in place, is likely to cause the clerk of fraud, increase the cost of the case, by the field inspection, the headquarters telephone interviews, etc., to set an example, the tree good rules.

Salaries

With prices higher and higher, a pay cut is a very difficult thing, some companies to cut jobs, optimize the number of personnel and structure, and achieved good results.

(1) What kind of cut staff? Corporate existence value is profit, social responsibility, business is divided into many departments, many employees, financial profit unit should do accounting work, by department, by branch, by personnel accounted for separately, can not be easily laid off employees profit center, complete You can cut staff costs center, never profitable branch, department, employee start, this department does not rectify, not to reduce costs, the company's profit is bound to be cut.

(2) How to optimize the organizational structure? Distribution system in the enterprise, flat organizational structure, fast response, passing less clear benefit liability exists, in operation, the senior staff costs consume the largest enterprise, not only their own wages high, driven by a variety of cost is also large, and therefore, Many companies at this stage does not have a deputy, removed, Deputy Vice Minister and other duties, only one responsible for a department, minister, branch manager reporting directly to the general manager, at lower costs, while also increasing the efficiency of business operations.

(3) market, the proportion of back office staff how to adjust? Some dealers are experienced, reduce the number of back office staff, to create profits by reducing overhead, such as human resources, marketing, finance department, other departments back office personnel, and many department does not have ministers, located only commissioner, such as human resources section, only two commissioners, reporting to the general manager, to save costs, but the profits go directly to creators, such as marketing, service, respect of claims personnel layoffs to be slightly cautious, because these people are related to corporate profits and development.

Commission bonus

There are two ways better, contracting and low floor high commission system. Contracting a long time, the contract fee per vehicle to give a certain amount, including salary, commission, vehicle expenses, hospitality, office utilities and other subsidiaries operating expenses, the advantage is that if the regional market situation is good, the branch manager as a contractor people will be very hard work, once the market situation is bad, the branch profits dropped significantly, the contractor will be poor motivation; low salary system-tested high commission in debt management, debt were faced with huge overdue data, high commission is a lot of incentives to stimulate the mobility of employees, and achieved good results and provided that the time and cash incentives.

Exhibition fees

Various forms of show promotion, pay opportunities, tourism will, service, large orders, etc., used to be the main way of construction machinery marketing, but with fewer incremental customers, the exhibition has been unable to become the year of Almighty God Therefore, the current quality of the show to pursue shift from the pursuit of the number of exhibition is the consensus of the majority of dealers, to show the implementation of lean management, reduce costs and improve the basic requirements for transactions.

Travel

Relatively speaking, the travel costs are fixed, because the construction machinery industry is running marketing, home, very few customers, in order to share is not falling, can not travel fell sharply, many dealers from travel cost savings at this stage, The result is that sales performance decline. CEOs said a dealer, more than 20 branch offices under his authority, the sales champion is running most of the clerk, March monthly vehicle traveling more than 5000 km, therefore, for travel savings from the function level, that is, consider input-output ratio of the individual sales do accounting, if running more and no results, you have to run the amount of re-planning, but overall, still running to strengthen and improve the effectiveness of running, travel expenses accounting To one one meeting, not across the board.

Third, how to effectively reduce financial costs

In business practice, many companies high financial costs, can account for 10% to 20% of total expenses, expenses finance charges, are helpless passive move, the main purpose is to ease the cash flow, and how that effectively reduce financial costs then, mainly in the following ways:

1, for working capital loans for the acceptance loans, banks now cash loans to SMEs, interest rates generally go up 30% to 50% in the benchmark interest rate on the basis of generally approximately 7% per annum, 10 million yuan loan 700 000 per annum Yuan, the financial outlay a lot of money, banks are willing to do the acceptance SME loans, margin of 30% to 50%, six-month period, generally charge five ten thousandths fees, no other charges, relatively speaking, Many low cost.

2, in order to reduce the loan, you have plenty of cash flow, by increasing sales, strengthening the recovery of accounts receivable, lower operating costs in three ways, these three methods is the business of hard power, no matter how bad the market situation, These three things do a good general manager is the responsibility lies, is the general manager can not shirk responsibility, the test is the general manager to lead the team's ability to fight a hard battle, because the force can not replace its implementation, rely on their leadership and execution to deal with and solve.

In addition, there are other expenses may be considered by being divided into two types of variable costs and fixed costs. Usually fixed cost reduction smaller room, variable costs through strict management and assessment, change system implementation. In short, compression costs, like squeezing water from the towel, trying to squeeze always there, must rely on a cost per point of consideration, to realize a little bit of cost considerations.