Cut Cost, Not Quality

by Bill Krause

The best way to approach business in today’s market is to make it a priority to take excellent care of your customers. The customers are king and queen so make sure you treat them like royalty. They are the ones that can make or break your success. You don’t have to give away the farm BUT since they are the reason we are here, let them know that they are important.

Let’s talk about saving money; cutting overhead without hurting our product or our presentation. You need to comb through your business from top to bottom. Do not leave any stone unturned while you reduce your cost of doing business.

We will start with your phone service. If you have not checked with your current phone provider in over 12 months, you are probably paying too much. Get your bills out and see what you are paying. Find out what services you have and find out if you still need them. Are you using all your phone lines? How much are you paying for Internet? Call some other providers and ask them for their rates for the same services. Compare apples to apples. In most cases you can get a sizeable reduction in cost. They are not going to call you -- they like your money too much.

Find ways to reduce your electricity. Shut it off, unplug it or take it out of your place of business. Turn off your computer, copier, coffee pot and lights you are not using. The list goes on and on. Call your provider and ask for an energy audit. They are free and can be very helpful. Many times just looking over the bill will bring you good understanding and remind you of what you are paying.

Look at your garbage contract. They usually automatically renew without a written cancelation. Find the date when yours ends and negotiate, look for another company. Let them know that you need to reduce your cost. See if you can cancel and share with another business. Cancel and take your garbage home.

Call your suppliers and see how you can reduce your cost. Change the number or size of your shipments. Inquire as to what special they have for you to enhance your bottom line. Is there any co-op money for advertising? As a rule they do not tell you if you do not ask. How do you get free shipping? Just flat out ask, “How do I reduce my cost?” You will be overjoyed at what is available to you. Look for new suppliers of the same products. Do not accept a “no” from someone who does not have the power to say yes. There is usually someone up the ladder that is interested and has the ability to deal.

Check your paper prices, toner and answering service (do you still need it?). Change your A/C filter. Go over your incoming or outgoing bills with a fine-tooth comb. Do not assume you are paying the right price. You may be wasting money that is better used for some other great endeavor. It is your money; find it and use it wisely.

Be creative; leave no stone unturned. There is gold all over your business from the top to the bottom.