Archive for 'Uncategorized'

The Antidote For Worry

Is there a cure or antidote for worry?  Do you ever worry?  I’m certain that we’ve all experienced the feeling of dread or worry.  And, if we’re not careful, worrying can become incredibly consuming.

A Multitasking Mind

Absorption Costing Caveats

We’ve been taking you through a series of articles designed to help you properly price your goods and services.

Before we continue, this article assumes you have read several primer articles – including the article Absorption Costing.

The Article We Really Wanted To Write

Actually, we started to write a version of this article outright.  But then, in order for it to be meaningful, it would have assumed too much.  Because of this, we decided to start from the beginning ...

Absorption Costing

That title just makes you want to dig right in, right?

For most, Absorption Costing (e.g., Full Absorption Costing) is another term that requires definition.  I remember first learning about it in business school in the 1980s.  Chances are you probably aren’t interested in becoming a CPA or accountant.  So, we’ll keep it simple.

What Is It?

Absorption Costing is the process of assigning costs to the production of a good or a service.  It includes:

• The Direct Costs of production.  This includes ...

Variable Costing

Variable Costing is a term used in cost accounting.

For most people, the term Variable Costing needs explanation.  This article is a treatise on which types of costs to include in developing your product cost.  Or, what to include in the price of your goods and services.

At Blue Elevator™, we discuss and tackle these issues because it’s important for our Member Clients to be equipped.  So, don’t let the words “cost accounting” dissuade you from moving forward.

Variable Costing – In ...

Top Secret Formula

I still remember the day.  I was in a 4-unit Probability and Statistics course in business school at Cal State University, Fullerton.

Next to the Calculus course I had to take, this was probably one of my most challenging courses.  The class was so difficult that the instructor allowed us to take one 8 1/2″ x 11″ ‘cheat-sheet’ into the exam.  We could write anything we wanted on it.

I spent hours upon hours filling every square inch of that ...

Constructing Gross Margin

When it comes to constructing Gross Margin, it can be elusive.

Gross Margin is critical when it comes to determining the future viability and scalability of an enterprise.  If your margin isn’t adequate enough, it can severely hinder your ability to support future growth.

Definitions

As we begin, let’s get some definitions out of the way.  Typically, when we work with our clients, we refer to margin (e.g., Gross Margin) as follows:

• Gross Margin.  This is defined as your Selling Price less ...

Selling Costs

If you are a Blue Elevator™ Group Member, hopefully you are familiar with our relentless focus on margin.

Your products and services must be properly priced in order for your organization to successfully grow and scale.

Placing Selling Costs Above The Line

If “placing Selling Costs above the line” doesn’t resonate with you, be encouraged to read this article: Proper Pricing Principles.

One of our top secret advisory practices is to help clients price their goods and/or services in ...

Soft Costs

Labor and material.  Sticks and stones.  Widgets.  Raw Materials.  Labor.  All of these are what would be termed Hard Costs.  Another term for this would be Direct Costs.

But if there are Hard Costs, there must also be Soft Costs.  Another term for Soft Costs would be Indirect Costs.

If you haven’t already done so, we recommend you read our article Hard Costs before reading on.

Picking Up Where We Left Off

In the article above, we provided an example surrounding a ...

Hard Costs

Labor and material.  Sticks and stones.  Widgets.  Raw Materials.  Labor.  All of these are what would be termed Hard Costs.  Another term for this would be Direct Costs.

Mind Your Own Business

We’ve probably all heard this phrase before.  And, in this case, it’s not just an admonishment not to be nosy.

It’s important to know every aspect of your business – including, but not limited to, knowing exactly what it costs to produce your goods and services.

You need to mind your ...

Business Valuation – The Main Things

Business valuation: What are the main things?

What drives the value of your business?

What is your business worth?

Most business owners want to know the value of their business.  Could you sell your business?  If so, how much could you get?

These are common questions.

Keep The Main Things The Plain Things

I spent several decades in a great church.  I came to really appreciate my Pastor, CW Perry.

As with any church, the constituents have a lot of opinions.  But, ...