David Sanders: Why Getting Product/Service Costing Right Is the Key to Growing Performance and Value

Have you Subscribed/Followed yet? Please do so I know I’m on the right track and adding value.Click here for further information and the eBook of resources:https://www.criticalfewactions.com.au/podcast/Do you really know what your products cost? Or, just what your system says they do?When your data tells you one thing, but your invoices say another, who do you trust?And what if the purpose behind your costing model is the reason you can’t see what’s really happening?If you’ve ever wondered why your numbers don’t match your experience, this episode is for you.In this conversation, John Downes speaks with Dave Sanders, CEO of Bestrane, about the truth behind product costing and how CEOs can use it to make better decisions and improve their Organisation Performance and Value.What You’ll Learn:== How to reveal hidden behaviours through your costing model== Why AI can’t replace good judgement in decision-making== How accurate costing improves business performance and valueHighlights:00:00 Dave Sanders and The Journey into Product Costing02:38 Understanding Product Costing04:10 Case Study: Electronic Components and Software07:33 The Role of Invoices in Costing17:40 Challenges in Product and Service Costing21:52 Value-Based Pricing in Practice23:10 Challenges in Service Pricing25:26 Costing in Software Businesses34:29 AI's Impact on Costing and Decision Making38:20 Critical Actions for Founders and CEOsThe #CriticalFewActions™ You Can Do TodayWhen I work with successful business leaders to create their Strategic Plans and help them implement them, I often find that their product and service costing doesn’t tell the full story. Many assume they know their margins, until the data reveals how sales or customer behaviour drives unseen cost.The first Insight is about Purpose-Driven Costing.Many costing models exist to satisfy accountants rather than decision-makers.So, what can you do?• Define what decision each cost figure is meant to support.• Align every measure with your business purpose: service, efficiency, or value.The second Insight is about Revealing Hidden Behaviour.Linking costs to activity exposes how teams or branches use resources differently.So, what can you do?• Analyse behaviour patterns behind cost drivers.• Use costing to start conversations that improve performance, not assign blame.The third Insight is about Thinking Before You Automate.AI can model hundreds of scenarios, but leaders must still decide what matters.So, what can you do?• Use technology to test options but decide with intent.• Keep purpose and human judgement at the centre of every decision.Sponsor: The CEO Masterclass in Strategic Planning and ImplementationAre you a business owner or CEO striving to elevate your business to new heights? But right now… you’re not hitting the targets or objectives your business needs to achieve. Or maybe you’ve hit a roadblock you can’t move past—a major challenge with no clear solution; and there’s no one in your world you can talk to about it.This isn’t another generic leadership course. It’s a highly focused, small-group programme where you’ll work alongside your peers, on your business, break through barriers, and implement real-world strategies; not just to solve the problems holding your business back, but to accelerate your growth faster than you thought possible.Find out more here: https://www.criticalfewactions.com.au/ceo-masterclass/Final ThoughtWhen product costing is connected to purpose, it becomes more than accounting. It becomes strategy. CEOs who align their numbers with their decisions gain clarity, control, and confidence. Start by asking: what decisions do these figures really help me make?#CriticalFewActions #CEOMasterclass#ProductCosting #BusinessStrategy #DecisionMaking #Leadership #AI #OperationalExcellence #BusinessGrowth #JohnDownes