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Hints and Tips | Inefficiency


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Inefficiency

Are you being as efficient as you can be? This question is especially important if you are using a low-price strategy to gain competitive advantage.


It’s important to look at each of your costs – such as labour, material and overhead – and benchmark them against norms in your industry. If your costs are above average, it means you’re not as efficient as your competitors and action is required. For industry benchmark data, consult Industry Canada’s SME Benchmarking Tool (www.sme.ic.gc.ca).




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