Costing sounds dull but it is fundamental to many businesses particularly manufacturers. Yet many companies pay scant regard to costing and lose business or undercharge for their services as a direct result of inaccurate or inappropriate costing..
Our approach to costing is pragmatic. We look with you at your business, the sector you operate in and create a costing model in an excel workbook that best describes how you actually work and is easy for you to review on a regular basis.
Our costing projects have ranged from small engineers who have a simple materials plus mark up system to large manufacturers with expensive and complex equipment and many different processes. The approach is the same; how do we improve the outputs of the costing system to maximise your profit? For the small engineer it may be as simple as ranking jobs in terms of complexity and applying a higher mark up for more complex jobs. For the large manufacturer charging an hourly rate for each operation and mark ups we look at activity based costing to allocate and absorb costs in the best way to maximise profitability.
If this is an area of interest for you give us a call and see if we can help.