It’s simple Math. The less your products or services cost you to provide the higher your profit margin. However, to succeed in this area, you will have to reduce outgoings without letting it negatively affect your customers’ experience and satisfaction. A topic that you can find out more about in my post below.
Use suppliers that offer price matches
A straightforward way of reducing the overhead costs in your business without the customer suffering is to source everyday supplies from a provider that offers a price matching service. Luckily, you can get decent price match deals on all sort of products such as basic office supplies, and even when you browse physician lab coats online, something that means you can fulfill both your business needs and cut costs. All without the customer experiencing any reduction in the service or product they receive.
This is because price matching is where such a supplier will promise to lower the cost of an item to meet any other retailer. The advantage of this to your business is that it guarantees you the lowest possible price, without having to engage in the time-consuming process of swapping providers all of the time.
Negotiate with utility providers
Next, remember that while most businesses don’t get around having to pay for utilities, the cost of these is not always set in stone. In fact, in a business situation, many utility providers such as electricity, water, gas, and internet may be amenable to negotiations over the cost that they charge, especially if you can agree to use them for a more extended subscription period. This is because it ensures they have your custom locked in, and so its advantageous for them because they are getting confirmed business over a long period of time.
In fact, to negotiate such a deal it’s always best to speak to someone from their customer services department, and try and get a person with as much decision making power as possible like supervisor or manager. Also, remain polite and calm at all times because shouting at the person you are talking to certainly won’t get you the best deal. Just remember to highlight how loyal a customer you have been, or can be in the coming months, and how a reduction in monthly cost will secure your business for a longer time.
Consider remote working setups
Although, for a select few businesses, primarily office based startups, remote working may be an even better option for cutting costs. After all, if you have no office, the running expenses such as rent and utilities disappear!
The great thing about remote working is that many employees see it as a significant benefit as well because it allows them to claim back the time they would end up spending on commute each day. It also provides added flexibility for many employees with young families and other life commitments that can be seen as a massive boon as well.
Something that means you may be able to offer this benefit while reducing the basic salary you advertise the post at, making it a double saving situation. All while still providing the same service and quality to your customers.
Automate as much as possible
Next, if you want to maintain the level of quality and customer service, you are providing, but cut costs then the automation of tasks is a crucial part of the plan.
Although, you do need to be particularly careful here because some things can be efficiently and effectively automated and removed from human control, which can save on salary and wages in the long run. While automating other aspects of your business may hurt customer satisfaction.
For example, streamlining shift scheduling, document production, and service booking can all be customized easily without an adverse effect on your customers. However, research often shows that when making a query or a complaint, dealing with an automated call direction system or email bots make customers feel unheard and frustrated, something that could negatively affect the standing of your business in the long run.
Therefore it’s important to remember that face to face, humanized, and personalized interaction with customers is a vital element to retain in any business, even when you are looking to cut costs.
What if I were to tell you that you could reduce the ongoing costs of your business just by addressing productivity? Well, it’s true and as in the business world time is money, it all comes down to how you manage your own and your employees time.
In particular, look to reduce wasted time by ensuring supplies are well stocked, and by using productivity software that lets your managers know immediately who is stuck and on what tasks.
Also, it can be useful to identify the top three areas that make the most significant positive difference to your bottom line and ensure that everyone is focused most on these in line with the Pareto principle.
Reduce the cost of your insurance
Insurance can be another area in which your business can cut costs. It is also an area in which it is entirely possible to slash these costs without negatively affect your customer’s experience.
One way in which to do this is to invest in additional security features both for your real-world business base like CCTV cameras and alarm systems, as well as your online setup.
In fact, by proving you have such measures in place, you can significantly reduce your insurance premiums.
Swap to a mainly online marketing program
Lastly, if you are looking to cut cost but still have an effective marketing programs that generate leads for your business, consider swapping from print media to a mostly online model.