COSTING PROCESS MODEL
Identify and set the correct cost structure for your products and services. Identify your desired, actual and variance of the costs which drive your decision making.
Small and medium organisations during their beginning stage, focus their effort on the development of their portfolios, services and value proposition for the customers. At the same time, they are constantly wondering how to create a correct cost structure for their products and services, and then find a desired profit margin.
Through an effective cost model, companies assure that their financial budget is correctly monitored, preventing the loss of monetary resources.
Invelo supports businesses in finding the most effective way to include all the factors immersed within the operation which affect the cost of their portfolio. As part of our special offer, we include in our analysis the value perceived by the company’s customers and a standard process to monitor variances and opportunities.
Some of the benefits of an accurate cost structure are:
- It assists and supports negotiation with suppliers
- It reflects and categorises the main cost drivers in order to create improvement initiatives to add more value to the customers and maximize the profit margin
- It becomes a criterion that supports decision-making based on real data
- It is a source to develop a benchmark analysis and challenge current pricing strategies