It's not the cost of making the product
Posted: Sat Jan 18, 2025 8:23 am
So, to make sure this COGS doesn't eat into your profits, you have to monitor it carefully every month. If you see COGS getting higher, quickly find the cause and fix it. You may need to optimize production, or find a cheaper supplier. Lastly, keep in mind that COGS varies depending on your industry and product. Some are standard, some are custom pricing. Remember, manage these COGS wisely so you can maximize your profits! #3. Admin Cost These are all the costs you have to bear to manage your business operations every day.
but more of the "behind the scenes" costs that you don't see directly. But, if guatemala phone number resources you don't take proper care of it, it can ruin your business. What is included in the Admin Cost? Here is the list: Staff salaries : This includes the salaries of everyone who works with you, from those who pack the goods to those who manage the accounts. These salaries are usually fixed, so even if sales drop, you still have to pay the staff salaries. Rent : If you have an office or shop, this rental cost is included in the Admin Cost.
This rent is also fixed, meaning that even if you don't have any sales that month, you still have to pay rent. Utilities : Electricity, water, internet bills—all of these are included in the Admin Cost. It may seem like a small amount, but if you don't monitor it, it can skyrocket. Office equipment : From pens to laptops, all the items you use to manage your business fall under Admin Cost. Don't forget to factor in maintenance! Software & tools : If you use software to manage accounts, CRM, or marketing tools, all of these are also counted as Admin Costs.
but more of the "behind the scenes" costs that you don't see directly. But, if guatemala phone number resources you don't take proper care of it, it can ruin your business. What is included in the Admin Cost? Here is the list: Staff salaries : This includes the salaries of everyone who works with you, from those who pack the goods to those who manage the accounts. These salaries are usually fixed, so even if sales drop, you still have to pay the staff salaries. Rent : If you have an office or shop, this rental cost is included in the Admin Cost.
This rent is also fixed, meaning that even if you don't have any sales that month, you still have to pay rent. Utilities : Electricity, water, internet bills—all of these are included in the Admin Cost. It may seem like a small amount, but if you don't monitor it, it can skyrocket. Office equipment : From pens to laptops, all the items you use to manage your business fall under Admin Cost. Don't forget to factor in maintenance! Software & tools : If you use software to manage accounts, CRM, or marketing tools, all of these are also counted as Admin Costs.