Fixed cost "creep" is the silent assassin.



It starts small. A 5% price increase here. An additional fee there. New software subscriptions that seem essential.

Before you know it, your expenses have ballooned by 20% while revenue stayed flat.

This gradual strangulation of profit margins happens so slowly, most business owners never see it coming.

I meet with clients who can't understand why their financial performance keeps declining despite stable sales. The answer lies buried in their expense creep—death by a thousand small cuts.

Here's how it happens:

Your rent increases 3% annually. Your insurance premiums jump 8%. Software subscriptions multiply like rabbits. Vendor prices inch upward quarterly.

Each increase feels manageable in isolation. But compound them over years, and they become devastating.

The Three Critical Questions Framework:

Every expense must pass this test:

1. Does this help obtain new customers?
2. Does this help retain current customers?
3. Does this increase customer lifetime value?

If the answer is "no" to all three, you've found a prime candidate for elimination.

Fixed Cost Surgery Strategy:

Review every recurring expense monthly. Ask yourself: "Knowing what I know about price, delivery, quality, and usage, would I buy this again?"

If the answer is no, flag it immediately.

The Brutal Truth:

Many businesses accept higher costs because "that's just how business works." This passive acceptance slowly erodes business efficiency and competitiveness.

Smart cost reduction requires surgical precision, not desperate slashing that damages capability.

Protecting your bottom line growth means staying vigilant against the creep that kills profitability one small increase at a time.

Don't let your business die a slow death from expense creep.