Friday, June 5, 2009

Costs vs Expenses vs Value

In these difficult economic times, cost and expenses are being looked at even closer than ever by individuals and businesses. How much is being spent on groceries? Insurance? Taxes? The kid down the street that mows the lawn. Those faced with a tight budget(or tightening budgets of their own to prepare for the worst) are constantly looking for ways to cut costs and expenses.

But what is cost, anyways? Most people think in terms of cost as a function of how much is spent from your pocket or checking account to obtain certain items or services. And indeed that is true...for the most part. Their is another side to cost that most people don't naturally think about in their day-to-day lives. This side of cost is the result of not buying a certain product/service or opting for an inferior product. While eliminating frivilous and unnecessary costs is always a prudent measure for improving ones overall bottom line and operating under a more responsible budget, many people can mistakenly go too far and cut "costs" that were indeed necessary and prudent.

When this happens, people and businesses experience an even greater cost later on. For example, if a company chooses to cut its landscaping and yard mowing services from its expenses an indirect result of that could be reduced business and traffic to their location because of the unsightly grass that gives the appearance of a rundown, ill-kept property. For Brokate Janitorial, we see this far too often with companies considering their janitorial and maintenance needs for their facilities. Often times a company will opt for the lowest bid regardless of other factors in hopes to keep costs low. What happens almost as often, however, is that we will get calls from these same companies down the road looking to fix the poor work done by other companies. This is not too suggest, however, that you should always go with the highest price either. You don't always get what you pay for, but the more you research and consider all factors the better your purchasing decision will be.

This past month we received a call from an account we had managed for 4-5 years and always kept happy and looking great. Last year they sent the services out for bid (per their requirements) and went with a lower PRICED (notice I didn't say COST)company. Not even 6 months had passed before they were removed from the building and we were called back in to fix the mess they had left us. The next day we received an email from the head of the building excited to see the instant improvement and look of their facility.

These are just a few small examples of the many ways that people can overlook the overall impact of choosing how to spend their time and money; which for businesses equates to the same thing. How the individuals of a company spend their time is directly related to how much money thier company makes. By focusing on what they do best, and leaving the rest to those more qualified, a company can operate with much greater efficiency and productivity.

If cost is a concern for your company, please contact Brokate Janitorial and we can help you receive the most value for your dollar. By properly maintaining your facility, Brokate Janitorial can extend the life and wear of your building for a MUCH lower cost in the long run.