She stopped making ten tiny batches of cookies (ten driver events) and started making one giant batch (one driver event), saving an hour of labor.
She merged delivery routes so the van made 12 stops instead of 18, saving $45 a week in fuel.
"A cost driver," Leo said, "isn't just a cost. It’s the activity that makes the cost appear. It’s the engine. The gas pedal."
One Tuesday, her accountant, a patient woman named Leo, sat her down with three months of receipts.
Within two months, The Daily Rise's profit margin rose from 8% to 14%. The oven still wheezed. But now, Mariana knew exactly which pedal to push—and which to lift her foot from.
Leo shook her head. "No. Look at the production log. In August, you made 400 croissants a day instead of 200."
"Mariana," Leo said, tapping a graph. "You think flour is your biggest problem. But look closer."
So she changed things.
She stopped making ten tiny batches of cookies (ten driver events) and started making one giant batch (one driver event), saving an hour of labor.
She merged delivery routes so the van made 12 stops instead of 18, saving $45 a week in fuel.
"A cost driver," Leo said, "isn't just a cost. It’s the activity that makes the cost appear. It’s the engine. The gas pedal." what are cost drivers
One Tuesday, her accountant, a patient woman named Leo, sat her down with three months of receipts.
Within two months, The Daily Rise's profit margin rose from 8% to 14%. The oven still wheezed. But now, Mariana knew exactly which pedal to push—and which to lift her foot from. She stopped making ten tiny batches of cookies
Leo shook her head. "No. Look at the production log. In August, you made 400 croissants a day instead of 200."
"Mariana," Leo said, tapping a graph. "You think flour is your biggest problem. But look closer." It’s the activity that makes the cost appear
So she changed things.