Most Common Cost Categories

The most important costs of a profit oriented company or any non-profit organisation can be classified into 3 categories:

Salaries and wages
Raw materials and resold products
Sub-contractors

Well they are just those that we never touch. These costs are very profession-specific. You know them much better than us, and you keep them permanently under strict control, otherwise your company would go bankrupt fast.

However there are also overhead costs. The overhead costs usually take not more than 10% of the total costs at a well managed company, however they have two very unpleasant features:

  1. They do not really depend on the income. If the sales are growing, the overhead costs increase fast. But if a recession comes, the overhead costs do not shrink automatically.
  2. This 10% of the costs may consist of 15 to 20 different cost categories. All categories require special product and market knowledge. Though this knowledge can be obtained (we we been learning it since 2005, and we are still learning), according to our experience there is not enough time for it at most of the companies.

Furthermore some of the invoices (e.g. mobile phones, electricity) contain such items and in such format that many people simply cannot follow them. Maybe the suppliers do this intentionally, don’t they?

Ráadásul némelyik költségszámla (pl. mobiltelefon, villanyszámla) olyan tételeket tartalmaz, és olyan formában, hogy igen nehezen lehet kiigazodni rajta. Lehet, hogy nem véletlenül?

We dug ourselves deep into the mysteries of the various overhead costs; therefore we find substantial savings even at places where everyone believes it’s impossible. The most common cost categories we deal with are the following:

Landline Phone Costs -18%Maintenance Costs -10%
Mobile Phone Costs –17%Packaging Costs –18%
Internet Costs –30%Transport/Courier Costs -28%
Stationary Costs -17%Drinking water costs –30%
Toners –35%Chemicals -20%
Printing Costs -15%Lubricants -6%
Postal Costs –12%Auxiliary raw material –15%
Communal Waste -30%Electric Energy Costs -10%
Hazardous Waste –30%Fuels –1,5%

The red figures indicate the saving opportunity at each category. You can easily calculate in a minute how much we can save to you: Click here for the calculator

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