Knowledge Base

SGA’s Cost-Efficiency Strategies: Thriving Amid Rising Costs

by | Feb 16, 2024

We all know the cost of living and running a business is going up, but at SGA, we are implementing ways to become more cost-effective in our systems and equipment to limit how much we need to increase the cost of our services. SGA is creatively coming up with ways to economise through management, for example, by purchasing reusable equipment and making more efficient cleaning teams through training up employees. All the input costs, such as labour, energy, equipment, and services, are all rising in price, but with these new strategies that SGA have implemented, we can continue to grow and thrive as an organisation.

 

At SGA, we’re committed to optimizing our operations and managing costs effectively. Let’s delve into the strategies we’ve implemented to economize through management:

 

Saving Energy & Water

SGA recognizes that energy and water consumption play a significant role in our operations. By transitioning to medium-pressure water systems, we’ve achieved a dual benefit. These systems use approximately half the water compared to standard wide hoses, resulting in energy savings. Here’s how it works:

  • Old System: Wide hoses consumed around 75 litres per minute at low pressure (5 bar).
  • New System: With medium pressure (20 bar), we now use only 35 litres per minute.

This reduction in water usage not only conserves resources but also simplifies the cleaning process. The efficiency gains translate to lower labor costs, allowing us to maintain stable prices for our customers.

 

Reusable Gloves

By opting for reusable gloves over one-time-use disposable ones, SGA is making a forward-thinking investment. Although reusable gloves may have a higher initial cost, their long-term benefits far outweigh the expense. These gloves not only contribute to cost-effectiveness but also align with environmental responsibility. Less waste and fewer disposables mean a positive impact on our planet.

 

Polyurethane Gum Boots

SGA’s transition from PVC gum boots to polyurethane is a wise move. Here’s why:

  • Lighter & More Comfortable: Polyurethane boots offer improved comfort for workers, enhancing their overall experience.
  • Longevity: These boots last three times longer than their PVC counterparts. Despite being slightly more expensive upfront, the extended lifespan translates to significant savings over time.
  • Reduced Purchasing Frequency: By investing in durable polyurethane boots, SGA minimizes the need for frequent replacements.
  • Environmental Impact: Fewer discarded boots mean less waste, benefiting both SGA and the environment.

 

At SGA, we recognize the long-term impact of equipment purchases on our business. Here’s how we’re strategically approaching quality and cost-effectiveness:

 

Investing in Quality Equipment

SGA prioritizes quality over short-term savings. Rather than opting for cheaper, inferior items, we invest in high-quality equipment that meets our stringent quality control standards. By thoroughly testing and evaluating hoses, connectors, pumps, and other cleaning tools, we identify the most reliable options. These quality items, purchased in bulk, outlast their cheaper counterparts.

 

Application Across Resources

Our commitment extends beyond cleaning tools. When acquiring resources for offices, staff, and sites, we follow a similar approach.

Vehicles: We choose safe, reliable vehicles that minimize downtime and maximize utility. These investments pay off in the long run, as we can use them effectively and even resell them later.

Chemicals: Opting for higher-quality cleaning chemicals ensures efficiency. Although they may cost more initially, they clean thoroughly, reduce the quantity needed, and prevent audit or cleanliness issues for our valued customers.

 

Well-trained staff is the cornerstone of efficiency and safety. Let’s delve into how our approach benefits both our teams and our clients:

 

Investing In Training

We allocate significant resources to train our staff comprehensively. This training goes beyond safety protocols; it ensures that our team members understand the intricacies of the cleaning process. By equipping them with knowledge and skills, we empower them to perform their tasks efficiently and effectively.

 

Efficiency & Client Benefits

As the saying goes, “time is money.” The more efficient our staff is, the better the outcome for our clients. Here’s why:

  • Cost Savings: Efficiency translates to reduced labor hours, which directly impacts our clients’ costs. We don’t need to charge extra for inefficiencies or wasted time.
  • Client Satisfaction: When our staff completes tasks swiftly and effectively, clients receive better service. Their satisfaction contributes to our long-term success.
  • Cumulative Savings: Over time, these small efficiency gains add up significantly for our clients, making our services even more valuable.

 

Avoiding Cost Increases

By maintaining efficiency, we avoid the need to increase costs. Our commitment to streamlined operations benefits both SGA and our valued clients.

 

SGA’s approach to leveraging the Australian government’s Research and Development Tax Incentive (R&D Tax Incentive) demonstrates a forward-thinking strategy. Let’s explore the benefits of this incentive and how it aligns with SGA’s goals:

 

R&D Tax Incentive Overview

The R&D Tax Incentive aims to stimulate Australian investment in research and development (R&D). It has been in place since July 2011, replacing the R&D Tax Concession. By offering tax offsets for eligible R&D expenditure, this program reduces company R&D costs.

 

Investing in Original R&D Activities:

SGA’s commitment to long-term original research and development activities, such as the Water Guard and Phage Guard product series, is commendable. Although there’s an initial investment in R&D, the return comes from selling and utilizing these newly developed products.

 

Business Growth & Customer Satisfaction

SGA’s focus on building the business and satisfying customers through innovation positions us as industry leaders. Rather than increasing service prices, we prioritize resource management and cost-efficiency.

 

Commercialization & Thriving Amid Rising Prices

SGA’s plan to commercialize more R&D programs ensures resilience during challenging times when prices are escalating. Our long-lasting business model prioritizes customer satisfaction while optimizing available resources.

 

Smart Resource Management

SGA’s commitment to working smarter, not just harder, reflects our dedication to creating a sustainable and efficient organization. By embracing the R&D Tax Incentive and implementing strategic cost-saving measures, SGA sets an example for responsible business practices.

 

Conclusion

SGA’s commitment to cost-effectiveness shines through strategic changes. From conserving energy and water to opting for reusable gloves and durable polyurethane gum boots, we’re poised for continued growth. For more information about SGA or to inquire about our services, please email us at enquiry@sga.com.au. We’d love to hear from you!

 

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