How to Keep Your Expenses In Line

     Businesses are always looking to keep expenses in line.  We ask our employees over and over to cut expenses, reduce spending, and be mindful of the return on every penny spent.  This is just good business, especially in today’s economy.
     However, you need to be careful that you don’t cut expenses too much, because you can’t continue to cut expenses while increasing revenues.  If that was the case, then businesses would just lay off all their people, turn off the electricity and phones, and cut expenses while trying to keep the profit margin growing.  Too deep a cut in expenses can also be demoralizing to employees.
     Here's a positive example of a business that involved the employees in it's cost cutting without demoralizing. Rather than be the “evil enforcer” of expense reduction, Primo Water decided to allow peer pressure to keep travel expenses in line.  They began disseminating a monthly report ranking company travelers by their per-day expenses while on the road.  The result was a 5% decrease in daily travel costs!

 

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