Cost Containment Savings Calculator
  • Cost Containment Savings Calculator
  • Cost Containment Savings Calculator
Originally published: 31/01/2020 16:38
Publication number: ELQ-74255-1
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Cost Containment Savings Calculator

The Cost Containment Savings Calculator makes it easy to quantify savings and lets you save smartly!

Description
Whether the economy dips or rainy days prevail, sooner or later, most companies find the need to tighten the belt. By definition, cost containment pertains to carefully eliminating unnecessary spending, while protecting against any long term damage to the company.

The Cost Containment Savings Calculator builds a proposal to bring back the desired profitability.

To start the process, list expenses that are considered non-crucial in nature. This might include, in a hotel for example: lobby decorations, free newspapers, free water, room amenities, preventive maintenance, shuttle trips, etc.

Once entered on the calculator, the current quantity and/or frequency of these expenses are listed along with their associated costs.

The next step is to enter the proposed frequency of offering. This could mean cutting the frequency or eliminating these expenses. For example, the hotel can reduce the ordering of 50 newspapers a day to ordering 25 newspapers a day, by eliminating a newspaper brand. The frequency of service for lobby flower decorations could be changed from twice a week to once a week, possibly by changing the flower type. If you want to eliminate a current expense, simply put a zero in the proposed section.

On the calculator, drop downs let you select for frequency. From there, formulas will drive the savings calculations of each measure. These will include the savings in dollars, as well as the percentage change from current practice to the proposed practice.

The Cost Containment Savings Calculator makes it easy to quantify savings and lets you save smartly!

This Best Practice includes
Excel File

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