Costs, Costs, Costs: How Managerial Decision-Making Impacts Pricing Negotiations with Reginald Tomas Lee

<p><strong>Reginald Tomas Lee</strong> is a Professor of Business Analytics at Xavier University in Cincinnati, Ohio. He has a PhD in Mechanical Engineering, and he's been involved in supply chain since ’96. Reginald’s most recent book is called <a href= "https://www.amazon.com/Project-Profitability-Ensuring-Improvement-Projects/dp/1637421699"> Project Profitability</a>. And one fun thing, he can't go on vacation, because he has two killer dogs.</p> <p>In this episode, Reginald shares wisdom with regards to the modeling he’s been making as he talks about the power of helping people understand more clearly how what it is that they do impacts cash.</p> <p> </p> <p><strong>Why you have to check out today’s podcast:</strong></p> <ul> <li>Understand why you should start seeing things from a cash perspective in relation to knowing what it is that it enables you to save</li> <li>Learn about the difference of cash cost and non-cash cost through situational examples from real life experiences</li> <li>Find out how your actions and decisions impact how you generate cash in a business</li> </ul> <p> </p> <p align="center"><strong>“Don’t focus on accounting margins.”</strong><strong> </strong></p> <p align="center"><em>– Reginald Tomas Lee</em></p> <p style="text-align: left;" align="center"> </p> <p><strong>Topics Covered:</strong></p> <p>01:17 – How Reginald shifted from being a mechanical engineer to thinking about supply chains and costing</p> <p>03:44 – What Reginald does: Helping people understand how their decisions impact cash</p> <p>07:18 – Talking about contribution margins: Accounting for things from a cash perspective</p> <p>11:09 – How to figure out the optimal price without using some measure of contribution margin</p> <p>14:34 – Hope as a strategy: Mark’s opportunity cost vs. Reginald’s opportunity revenue</p> <p>17:15 – Two types of costs: The cash cost and the non-cash cost</p> <p>21:41 – Reginald’s sales pitch: Very specifically identifying what the savings are</p> <p>24:02 – Discussion about Mark’s value t