It is important to not only know your cost but what they mean. One of the first things I look at when advising a client, of Maine Business Consultants, is there variable cost. I like to study all the items that make up my variable cost and understand what out of these are in our control. Maintenance cost of fleets both commercial or private especially those arising from revenue producing activities have to be examined to their fullest. Once you get a handle on your variable cost and what is driving them you need to put it in terms of a unit cost. You can determine your efficiency by looking at your internal man hour production and examining your internal work flow process and software use. Finally you need to know your particular business matrix and get down to a number such as it cost me so much per hour, or per person, or per run or whatever you base your billing on. ...read more