Control Costs and Expenses - Rule 9

Rule 9: Control your expenses better than your competition. This is where you can always find the competitive advantage. For twenty-five years running — long before Wal-Mart was known as the nation's largest retailer — we've ranked No. 1 in our industry for the lowest ratio of expenses to sales. You can make a lot of different mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you're too inefficient.

Comment: If your costs of materials is 3% less than your competition, you can sell 3% lower, make 3% more at the same sell, or put 3% more into advertising. WalMart did all of these things at one time or another.

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