Revenue is vanity, profit is sanity.
You might be selling 10 trucks a month, but if your leakage is high, your bank account won't reflect your hard work. Here are 5 hidden costs that bleed granite businesses dry.
1. The "Ghost" Breakage
A worker breaks a slab while shifting using the crane. Fearing punishment, he hides the pieces or throws them in the dump.
You think the slab is in stock. Months later, you try to sell it, and it's gone.
Solution: A strict reconciliation system where "missing" stock is flagged immediately.
2. Dead Stock Depreciation
That premium lot of "Black Galaxy" you bought 3 years ago? It's occupying space. Space costs money (rent/interest).
Plus, the stone might stain or fade. Holding stock too long is an expense, not an asset.
3. Measurement Leakage
Are you measuring using the "tape" method or digital calculation?
A manual error of just 0.5 sq ft per slab adds up. If you sell 10,000 slabs a year, that's 5,000 sq ft given away for free.
4. Unverified Vendor Bills
Vendors sometimes overcharge for thickness or quality grades. If you don't have a system to cross-check the actual received goods against the Purchase Order, you definitely overpaying.
5. Customer Disputes
Sending the wrong material and handling returns is the most expensive activity in the trade. Double logistics cost, potential damage, and a lost customer.
Conclusion
Profit isn't just about increasing sales prices; it's about plugging these leaks.
A robust inventory management system acts as a sealant for your business, keeping your hard-earned profits where they belong—in your pocket.