How To Reduce The Cost Of Production In The Business?

[joy101]

Many ways you can reduce the cost of production in the business, you can do that by reducing the number of employees in the business, so that the cost will not be much.

 

[Ernestnari]

When you reduce the cost of production in an organisation or a company . Then you are categorically saying that you want to reduce the quality of product to inferior quality which might affect your sales .

It really is not so. There are certain costs that are just redundancy in some business organizations. There are some organizations that staff exploit loopholes to divert money. Proper auditing would ensure that all costs are properly and rightly incurred.

 

[Genie011]

I think this depends on how well you are managing your business, remember the secondary reason for starting the business to earn money, nothing more.

 

[Shigobad20201]

I think this depends on how well you are managing your business, remember the secondary reason for starting the business to earn money, nothing more.

The cost of production in each business is always different and how you monitor and runs the business, take for example , we might be running the same business and the same size , the cost of production might be different because we have different ways in which we produce our product .

 

[Chibson]

When you reduce the cost of production in an organisation or a company . Then you are categorically saying that you want to reduce the quality of product to inferior quality which might affect your sales .

I don't think that reducing the cost of production means that you are reducing quality. There are a lot of ways you can use to reduce the cost of production. One of the ways of doing that is buying vehicles that consumes lesser fuel.

 

[Mostee501]

Outsource non-core activities: Consider outsourcing non-core functions or tasks that can be done more cost-effectively by external service providers. This can include areas such as IT support, accounting, payroll, or customer service. Outsourcing can help reduce labor costs and allow you to focus on your core competencies.

 

[Heatman]

I don't think that reducing the cost of production means that you are reducing quality. There are a lot of ways you can use to reduce the cost of production. One of the ways of doing that is buying vehicles that consumes lesser fuel.

There are some ways which a business owner or an entrepreneur is going to go with reducing the cost of production then it is going to affect the quality of the product that have been produced. This is why whenever you are looking at reducing your cost of production, you do it at the sections that are not going to affect the product quality.

 

[Syldan]

Actually I think buying of raw materials in bulk can reduce expenses compared to buying in small quantities and also to reduce the numbers of staff in the production process or pay them less than you have always so that many of them could not lost their jobs.