Examples of cost reduction

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A. Electricity cost. Try to avoid high usage during peak period can save electricity cost as the rate per degree is highest. Try to locate at a location where other lessee has low usage as the electricity rate is calculated based on the total consumption of the location instead of individual consumption.
B. Double insurance, Company buys a comprehensive medical insurance cover for the whole family of senior staff. Actually, some spouse of the company senior staff has separate insurance cover from other company.

C. Early Termination of a rental contract, If we can find replacement talent in our rental contract with landlord .We can avoid compensation in lieu of early notice by finding replacement talent

D. Staff cost. We can recruit the retired to do finance job which can be relocated to other cheapest finance labor cost area

E. Tax. Write off bad debt early to save the profit tax
F. Borrow at the lowest interest cost to decrease depreciation. Interest cost should be capitalized. So borrowing at the lowest interest cost can actually saving depreciation, e.g. borrow at US$ at lowest interest and convert it into HK$.

G. To avoid lost discount on weak routing, we should maintain purposely some customers who have volume to generate volume discount

H. Disposal of obsolete goods early to save warehousing space. Part of warehousing space can be used as office. Sq meter saved in warehouse can turn into value of Sq meter saved in office

I. Using own name in consumable goods can avoid the chance of being stolen and save the costs

J. Shorten the time of project deadline can save management man power cost

K. Decrease in salary should means decrease in cost of working compensation

L. You don’t have to pay holidays salary if staff has not passed the probation.