Strategic choices thanks to cost price calculations
Running a successful business is a dream for many entrepreneurs, but if you can’t control costs, that dream can quickly explode. Ultimately, of course, money has to be earned. Insight into the cost price is important, but how do you calculate the cost price per product if you have 100 different products? Then costing can be quite complex then..
Especially in the floriculture sector, entrepreneurs have to deal with many different products. Because there is so much diversity, it becomes more difficult to arrive at a cost price per product. This requires data, but above all insight. In addition to being director / owner at Triple Group, Marcel Eek is also involved as a Senior Business Advisor at Horti Analytics. He has extensive experience with complex financing structures and strategy development for fruit and vegetable and floriculture entrepreneurs.
Why is good cost control vital for your company?
To build a future-proof company, you have to make the right choices. You cannot do that on your gut feeling alone, you need insight for that. You should not only look at revenues, because it is ultimately about profitabiltiy. To measure is to know. With Horti Analytics we have developed models and dashboards to visualize the cost price and return per (sub) process and product. This makes it easier to make strategic choices. Even when it comes to new technology. If you know what you are saving, you can see if it is worth the investment. There is a lot of competition in the horticulture sector. You have to continuously optimize processes. If you don’t, the competitor will. You don’t want to be left behind.
Companies in the horticulture sector collect an enormous amount of data, where do you start?
First of all, we create a structure. We map out all actions and processes. From the purchase of cuttings to the final sale. This is where we start by collecting all data, so that we can link costs to all processes. As soon as we have all the necessary data, we will make it transparent. We do this by building custom-made and error-proof dashboards. Once a year you update variables such as the gas price, but otherwise you do not have to constantly enter all data. The models are built in such a way that this is done automatically. It is important that everyone can easily work with the models.
What is your strength?
Horti Analytics provides insight. We do this not only with the help of dashboards, but we also show entrepreneurs where to look and how to steer. A dashboard only works if the people of the company actually start working with it. We meet every month to support and advise companies in this, that is our strength.
How do you see the future in the horticultural sector?
Data is the future. Developments are going so fast. I was at the start of my career 30 years ago, when they just had computers. I wrote my graduation assignment on a typewriter, you can no longer imagine that. Can you imagine what will become possible in the coming years. We are ready for it!
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