Cost Savings

[Stunt]

Originally posted by: Feldenak
Not really sure...I'm pretty sure we saved the company a fair bit of money.

Switched to a VoIP system so our job sites (we're a construction co.) are reachable by extensions instead of long distance plus, we rent the softphones to the job sites through the company owned equipment division so we're making money that way...hrmm, maybe I ought to sit down and figure this out. :evil:

I just started calculated recently...you can be surprised what you save the company.

 

[spidey07]

Stunt, it doesn't work like that.

You reduced operation expense, which is nice. But still did not increase revenue.

What I mean to say is keeping margins stable and increasing revenue is better than flat revenue and reduced expense.

 

[andylawcc]

mine?

-$100k

 

[mugs]

Originally posted by: Stunt

Originally posted by: mugs
I don't really save my company money, I make my company money.

True sales guy.
Top line instead of Bottom line. 🙂

My business is a little more complicated, it's low margin with set market prices and declining volumes.

No, software engineer.

I understand where you're coming from, but you seem to be dismissing those of us who generate revenues for our company, because we don't save our company money. That's stupid.

I am not in a position to save my company money, and my company doesn't want me to save them money - they want me to write software that they can sell for millions of dollars.

 

[Stunt]

Originally posted by: spidey07
Stunt, it doesn't work like that.

You reduced operation expense, which is nice. But still did not increase revenue.

Companies care more about profit than revenues.
Notice how they are all benchmarked against EPS (earnings per share)

 

[Stunt]

It's all about how much shareholders take home at the end of the day.
What's a better company to own?

GM with $200Billion revenue or Honda with $92Billion?
GM loses $2.5Billion while Honda makes $4.9Billion...

 

[MetalMat]

Without your company selling a product or service, you would most likely not have a job reducing the costs of making that product or service. I am not saying one is better than the other, I am stating a fact that you need to sell something to make money and that is where sales guys (like myself) come in.

 

[LegendKiller]

Originally posted by: Stunt

Originally posted by: spidey07
Stunt, it doesn't work like that.

You reduced operation expense, which is nice. But still did not increase revenue.

Companies care more about profit than revenues.
Notice how they are all benchmarked against EPS (earnings per share)

Agreed. Revenue is great, but if you don't reduce cost, it's nothing. Being more profitable returns more money. That's why profit margin and Net Income, ROE, and such are more important than just revenues.

Personally, on Day 1, I saved my prior employer $3m. Going forward they'll save about $2m annually, indefinitely. That's from about 2 years worth of work.

My latest job, haven't done much yet, but costs don't matter as much. If I structure the deal better to reduce costs, great, but I do have to meet ROE levels. Bringing deals in is important, haven't brought any in yet, but if I do, it'll be ~3m/yr in revenue.

Bad thing about my prior job, didn't get crap for my efforts, other than my base salary. Now, I get a cut and it'll be nice and big.

 

[mugs]

Originally posted by: MetalMat
Without your company selling a product or service, you would most likely not have a job reducing the costs of making that product or service. I am not saying one is better than the other, I am stating a fact that you need to sell something to make money and that is where sales guys (like myself) come in.

Exactly :thumbsup:

 

[Stunt]

Originally posted by: MetalMat
Without your company selling a product or service, you would most likely not have a job reducing the costs of making that product or service. I am not saying one is better than the other, I am stating a fact that you need to sell something to make money and that is where sales guys (like myself) come in.

Agreed.
But you don't need to sell more to make a lot more money.

 

[MetalMat]

Originally posted by: Stunt

Originally posted by: MetalMat
Without your company selling a product or service, you would most likely not have a job reducing the costs of making that product or service. I am not saying one is better than the other, I am stating a fact that you need to sell something to make money and that is where sales guys (like myself) come in.

Agreed.
But you don't need to sell more to make a lot more money.

BTW, I sell stuff that you guys probably use in the plant.

 

[mugs]

Originally posted by: MetalMat

Originally posted by: Stunt

Originally posted by: MetalMat
Without your company selling a product or service, you would most likely not have a job reducing the costs of making that product or service. I am not saying one is better than the other, I am stating a fact that you need to sell something to make money and that is where sales guys (like myself) come in.

Agreed.
But you don't need to sell more to make a lot more money.

BTW, I sell stuff that you guys probably use in the plant.

Not anymore now that Stunt is on the job. 😉