Table of contents
Estimate the Total Yearly Expense Change
Total Yearly Expense Change = (How many more or less units to be purchased) x (unit price)
Tips
Examples
- Outsourcing cleaning will reduce yearly expenses for cleaning solutions by $52,000. (800 fewer cases per year) x ($65 per case)
Integrating touchless takeout will increase yearly expense for takeout packaging by $900,000. (6000 more cases per year) x ($150 per case)
Switching credit cards will eliminate a $375,000 yearly expense for annual fees. (5000 cards) x ($75 fee per card)
As a first pass, it may be easier to estimate a percentage increase or decrease for an estimated total yearly expense, rather than considering units and unit price.
Validators may separate generalized Value Items (cleaning supplies) into more specific categories (cleaning solution) as needed.