Fixed Costs
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Why Landscapers Should Strive To Reduce Their Fixed Costs

Landscapers whose landscaping businesses are expected to make a profit can do many things to increase not only the chances of making that profit but also inflate the amount of profits that are made. These methods fall into two categories which are 1) Those that increase income, and 2) Those which reduce outgoings.

As for specifics, the ways to increase revenue include gaining more clients, increasing average order values, and increasing the fees charged for services. More often than not it will be these sorts of tasks that most business owners will try to focus on as they perceive earning more income as the only way to increase profits, but that is not true.

A business can increase its profits considerably by earning the same as it has, but by then reducing the amount of its outgoings. This means that with not a single extra client you could see profits increase. Taking this a stage further you need to identify what costs can be reduced, and some costs which can have a huge impact if you can reduce them, are called fixed costs.

What Are Fixed Costs?

Before you reduce costs, you first need to know what they are, and this is why we want to first define what fixed costs are. Often referred to as “overheads”, these are the costs whose amounts do not usually change each month, or if they do, it is only by small amounts. They tend to be costs that a business must pay to remain trading. Examples of fixed costs include:

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