The Art Of Counting To Three, or A Few Words About Labor Costs

Source: www.theroomlink.co.za

A Few Words About Labor Costs

Running a company is kind of a road through hell. People wishing to start their own business have to be prepared to face numerous difficulties, starting from hiring employees who would be well-qualified enough, to countering competition and making sure customers are satisfied. And they vary depending on the division. For Marketing, for example, the most essential are the costs it incurs, calculating them and relating to prospective profits. Such expenditures consist of:

1. Advertising costs.
2. Costs of sales promotion.
3. Personal sales costs.
4. Costs of participation in trade fairs and exhibitions.
5. Public relations costs.
6. Costs of price promotions.

Without taking them into consideration, Marketing may lose many valuable facets and become less effective. But these expenditures are not the only important aspect.

Performance Indicators or KPIs of Action

Among the examples of Performance indicators or KPIs of action there are the following:

1. Turnover with existing customers – calculated for costs resulting from the services provided to existing customers,
2. Turnover with new customers – calculated for costs resulting from the acquisition of new customers,
3. Turnover in general – calculated for costs to be reimbursed on a long-term basis,
4. ROI – calculated for all monetary expenditure in the form of convertible cash,
5. The number of acquired customers – calculated for costs resulting from acquiring new customers,
6. Customer satisfaction – calculated for costs that bring us visible customer satisfaction,
7. Average customer value – calculated for actions increasing the value of the basket,
8. The number of orders – calculated for costs which generate an increase in orders.

Summary

Controlling the way money is spent, how effectively it’s done, is the key to maintain the company’s profitability. And to do it successfully, it’s worth taking advantage of modern technologies, solutions such as TimeCamp, which, through its project function, can calculate the personnel as well as labor costs of work on particular projects/tasks.