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All points aligned with conventional wisdom, IMHO, bar one: that it's easier to sell cost savings than revenue gains. Revenue gains can be quantified accurately
by osullivj 9y ago
All points aligned with conventional wisdom, IMHO, bar one: that it's easier to sell cost savings than revenue gains. Revenue gains can be quantified accurately, because revenue is recorded in all businesses. Cost savings, especially for staff time, can be much harder to measure.
- thaeli 9y agoI don't think it was saying that cost savings are easier to sell, but rather that they're worth much more.
- osullivj 9y agoFWIW my own experience is that cost savings are a much harder sell than revenue gains.
- georgeecollins 9y agoI think for startups, trying to show growth, savings are less valuable then revenue growth. For mature businesses measuring profit, a dollar of cost savings is worth more than a dollar of revenue.
- siddharthdeswal 9y agoAgreed, mature markets have usually been carved up, and competitors have to fight to gain even an inch of market share. In such a scenario, a dollar saved is a full dollar in the pocket. A dollar gained would have many costs to gain that dollar.