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Will You Add? - 50 Ways to Save Money
CRM Customer Relationship Management is one of the newest innovations in customer service today. CRM stands for customer relationship management and helps the management and customer service staffs cope with customer concerns and issues. CRM involves gathering a lot of data about the customer. The data is then used to facilitate customer service transactions by making the information needed to resolve the issue or concern readily available to those dealing with the customers. This results in more satisfied customers, a more profitable business and more resources available to the support staff. Furthermore, CRM Customer Relationship Management systems are a great help to the management in deciding on the future course of the company.As mentioned, there is much data needed for the CRM system to work. These fields include the customer name, address, date of transactions, pending and finished transactions, issues and complaints, status of order, shipping and fulfillment dates, account information, demographic data and many more. This information is important in providing the customer the answer that he or she needs to resolve the issue without having to wait for a long time and without going to several departments. With just a few mouse clicks, a customer support representative for example can track the location of the customer’s package or order. This is infinitely better than the cumbersome process of tracking shipments previously. Furthermore, the customer service representative will also be able to see the previous concerns of the customer. This is a great help especially if the
25. Investigate insurance
Allow time to investigate and negotiate your insurance policy before the renewal deadline. Make a note of when policies are due - many brokers wait until so close to the renewal date to contact their clients that they leave little time for negotiation.
26. Know your insurance needs
Have you worked out the latest level of cover you need? Is it more or less than last year? Can you cut out brokers, have your policy repackaged, or cap excesses?
27. Making space
Do not allocate a specific car park to a specific staff member. Have seven per cent fewer car parks than the number of staff entitled to them. On any day, you’ll find that there will be a certain number of absentees - you don’t need to pay for empty spaces.
28. Making the most of fuel cards
Have you reviewed your fuel card system? While most oil companies offer rebates, they do not do so in a directly comparable manner. Some will offer a rebate off the pump price, others choose different bases (eg, area averages) from which to make their rebate. Research will show which will work best for you.
29. Owning the office equipment
Take into consideration the total cost of ownership of your office equipment for the full life of each machine. Consider not only present needs, but future ones, before you purchase new equipment. Will new equipment offer a better, alternative way of doing things?
30. Office supplies #1
Decide on a comprehensive product range and stick to it. Be wary of ‘stationery cupboards’. While
If you are the owner of the company, or head of a department, if you have employees that fall under your direction, than you are the boss. And bosses are not just one of the gang. It is important for you, the company and your employees to have a clear demarcation between you and them. Friendly is one thing, friends is not what the relationship should be between yourself and those who work for you.In a small company or department this is often a hard line to draw. It is very easy to become close to the people you work with on an every day basis. But it is very important to be clear in your own mind your position and responsibilities to the company. For example, most people will find it very difficult if not impossible to discipline, lay off or fire someone they consider a friend. Reviews and increases in pay are other areas which may become cloudy if relationships are too close. How can you be impartial when reviewing a friend’s work?And as human nature is prone to be, your employees will expect more of you as a friend than as a boss. Not their fault, we rely on our friends to look out for our best interests even when those interests contradict with the company’s best interests. And when you choose the company over them, there will be problems on both side of the relationship. It is not fair to your employees to have them think of you as their friend when your job is to treat them as employees.
Buyer’s remorse is not a new idea. You may have experienced it right after a friend revealed he’d paid $100 less for his state-of-the-art golf clubs than you did. But what’s $100 between friends? Better luck next time, you think.
Now consider how you’d feel if the same friend told you he was saving $100,000 a year on running costs for his business. Suddenly, buyer’s remorse takes on a much more serious face.
Cost cutting may not be glamorous, but it is vital to ensure the stability and progress of every business in today’s competitive world. Fortunately, you don’t have to do it by yourself. There are consultants, such as Expense Reduction Analysts (ERA), available to help you manage costs. They scrutinise the ‘little things’ that are often overlooked, and yet add up to big costs - things like stationery, printing, telecommunications, couriers...you get the picture. Once scrutinised, they offer a solution tailor-made to that company.
“Our clients always make the decisions about which alternatives are most suitable for them, and are included in the process all the way through,” says Fred Marfleet, Chairman of ERA Australia. “But our help and guidance ensures they make the right decisions.”
To give you an idea of the kinds of things that a company like ERA takes into consideration when investigating a cost-management solution, we’ve put together a list of 50 ways in which your company might cut costs.
Starting with the big picture
1. Centralise purchasing
You may be buying the same goods from different suppliers! Coordinate the spending of different departments to maximise discounts through bulk purchasing power.
2. Cut the paperwork
Request monthly consolidated invoices to improve cash flow and reduce administration costs.
3. Ask for a reason
Don’t accept a price increase without challenge.
4. Get a second opinion
Obtain alternative quotes - on everything. Advise existing suppliers that the business is being tendered, and give them a chance to reduce their prices.
5. Call in a negotiator
Never allow the person in daily contact with a supplier to negotiate price. Use the good cop/bad cop approach, calling in someone else, so that emotion is not involved in the process. This also allows the day-to-day relationship to remain unaffected.
6. A beautiful friendship
Building good relationships with suppliers can result in reductions in costs. Ask them for suggestions on how to improve the way in which you work together. Could ordering weekly instead of daily allow them to reduce their own admin costs and enable them to pass the savings on?
7. Improve cash flow
Reduce your stock levels, and encourage suppliers to hold stock.
8. Review product specification
Ensure that products being used do not exceed requirements. Can you use second-hand pallets for transportation? Recycled toner cartridges?
9. Establish a caring culture
Caring is a pre-requisite to effective cost-management. If staff and executives are complacent, it’s difficult to implement savings.
10. Commit to stamping out unnecessary costs
Lead by example and demonstrate to employees that you care about saving money, even on the smallest items.
And now for the detail...
11. Advertising
Don’t just take their word for it: conduct regular research to ensure that your advertising budgets are being used effectively.
12. About the creative...
Remember that outstanding advertising creative work generally costs no more than ordinary creative. Having said that, ensure that you are not funding the creation of campaigns that win awards, but do not sell your product!
13. Bank charges
Review them regularly - at least once a quarter. Ask your bank manager to suggest ways in which you could reduce them.
14. Competitive banking
While it’s easy to be complacent and leave all your banking in the hands of one institution, it pays to shop around. Many banks specialise in different areas of expertise, and you can use that knowledge to serve your needs - and save you money. Plus, you won’t be fully dependent on one bank!
15. Challenge the manager
When you receive the statement of charges from your bank, take five minutes to consider ways in which the bank has added value to your business. Challenge the bank manager to come up with five himself - and ask yourself whether his list justifies the charges.
16. Cleaning
Ask your staff regularly whether cleaning services are meeting their requirements.
17. Communicate your needs
To ensure your cleaning contract - or, in fact, any contract, meets your needs, make sure the contractor knows what you expect. Let them know if there is a problem - but also give them feedback if things are going well.
18. Couriers #1
Understand how your couriers charge their clients. Some charge per consignment, others per parcel. Work out which service will be most effective for you and, if necessary, switch suppliers.
19. Couriers #2
What’s your courier company’s specialty when it comes to service? Some specialise in overnight delivery, other in international distribution. Use the courier that is most appropriate for the job, as this will be most cost-effective.
20. Couriers #3
Planning can add up to big cost reductions in this area. Timed deliveries are significantly more expensive than next-day deliveries. How soon does it really need to be there?
21. Couriers #4
If you help your courier company by minimising collection and waiting time, you become a more ‘attractive’ account, which can be a good negotiating factor.
22. Couriers #5
Look at instigating standard daily courier runs, which can be negotiated over and above the rate card.
23. Expiry can be expensive
Be aware of the expiry date on contracts for services such as electricity, gas, and phone. Suppliers often revert to a much higher penalty rate once the contract expires.
24. Freight costs
Consider handling costs and packing when putting together a consignment. Does it fill one container, or is it made up of several items that can be packed on pallets so that you can minimise transport handling costs and stock damage?
25. Investigate insurance
Allow time to investigate and negotiate your insurance policy before the renewal deadline. Make a note of when policies are due - many brokers wait until so close to the renewal date to contact their clients that they leave little time for negotiation.
26. Know your insurance needs
Have you worked out the latest level of cover you need? Is it more or less than last year? Can you cut out brokers, have your policy repackaged, or cap excesses?
27. Making space
Do not allocate a specific car park to a specific staff member. Have seven per cent fewer car parks than the number of staff entitled to them. On any day, you’ll find that there will be a certain number of absentees - you don’t need to pay for empty spaces.
28. Making the most of fuel cards
Have you reviewed your fuel card system? While most oil companies offer rebates, they do not do so in a directly comparable manner. Some will offer a rebate off the pump price, others choose different bases (eg, area averages) from which to make their rebate. Research will show which will work best for you.
29. Owning the office equipment
Take into consideration the total cost of ownership of your office equipment for the full life of each machine. Consider not only present needs, but future ones, before you purchase new equipment. Will new equipment offer a better, alternative way of doing things?
30. Office supplies #1
Decide on a comprehensive product range and stick to it. Be wary of ‘stationery cupboards’. While t
The best of all worlds is to have a product you can give away free and still make money. That world exists. The product need not be expensive or elaborate. It can be something simple - a sticker with a happy face, a pen with a logo, or some other intriguing item. This marketing approach is excellent because you can give the product away, charging the recipients only a nominal fee for postage and handling. If you price your shipping fees correctly, you can make thousands of dollars a month. So how do you let people know about the gifts you have waiting for them? The best way is by placing classified ads in national magazines, an enormously successful method. Small classified advertisements in such national publications as Popular Mechanix, and The National Enquirer produce excellent returns on such items, National publications such as these sell millions of copies each week or month. Even a tiny return from this kind of large readership means thousands of dollars in your pocket. One advertiser noted his ads have generated returns of seven times the cost of the classified ad. Other advertisers have done even better. To put together your own ad, begin by studying the classified ads in these national publications. Study every issue you can find.. Note the ads that show up issue after issue. These marketers have created a money-generating format, and they're taking full advantage of it. Study the long-running ads. Note that they're short, but they contain a nugget of appeal that makes you want to send your money immediately. Now try drafting your own
Starting with the big picture
1. Centralise purchasing
You may be buying the same goods from different suppliers! Coordinate the spending of different departments to maximise discounts through bulk purchasing power.
2. Cut the paperwork
Request monthly consolidated invoices to improve cash flow and reduce administration costs.
3. Ask for a reason
Don’t accept a price increase without challenge.
4. Get a second opinion
Obtain alternative quotes - on everything. Advise existing suppliers that the business is being tendered, and give them a chance to reduce their prices.
5. Call in a negotiator
Never allow the person in daily contact with a supplier to negotiate price. Use the good cop/bad cop approach, calling in someone else, so that emotion is not involved in the process. This also allows the day-to-day relationship to remain unaffected.
6. A beautiful friendship
Building good relationships with suppliers can result in reductions in costs. Ask them for suggestions on how to improve the way in which you work together. Could ordering weekly instead of daily allow them to reduce their own admin costs and enable them to pass the savings on?
7. Improve cash flow
Reduce your stock levels, and encourage suppliers to hold stock.
8. Review product specification
Ensure that products being used do not exceed requirements. Can you use second-hand pallets for transportation? Recycled toner cartridges?
9. Establish a caring culture
Caring is a pre-requisite to effective cost-management. If staff and executives are complacent, it’s difficult to implement savings.
10. Commit to stamping out unnecessary costs
Lead by example and demonstrate to employees that you care about saving money, even on the smallest items.
And now for the detail...
11. Advertising
Don’t just take their word for it: conduct regular research to ensure that your advertising budgets are being used effectively.
12. About the creative...
Remember that outstanding advertising creative work generally costs no more than ordinary creative. Having said that, ensure that you are not funding the creation of campaigns that win awards, but do not sell your product!
13. Bank charges
Review them regularly - at least once a quarter. Ask your bank manager to suggest ways in which you could reduce them.
14. Competitive banking
While it’s easy to be complacent and leave all your banking in the hands of one institution, it pays to shop around. Many banks specialise in different areas of expertise, and you can use that knowledge to serve your needs - and save you money. Plus, you won’t be fully dependent on one bank!
15. Challenge the manager
When you receive the statement of charges from your bank, take five minutes to consider ways in which the bank has added value to your business. Challenge the bank manager to come up with five himself - and ask yourself whether his list justifies the charges.
16. Cleaning
Ask your staff regularly whether cleaning services are meeting their requirements.
17. Communicate your needs
To ensure your cleaning contract - or, in fact, any contract, meets your needs, make sure the contractor knows what you expect. Let them know if there is a problem - but also give them feedback if things are going well.
18. Couriers #1
Understand how your couriers charge their clients. Some charge per consignment, others per parcel. Work out which service will be most effective for you and, if necessary, switch suppliers.
19. Couriers #2
What’s your courier company’s specialty when it comes to service? Some specialise in overnight delivery, other in international distribution. Use the courier that is most appropriate for the job, as this will be most cost-effective.
20. Couriers #3
Planning can add up to big cost reductions in this area. Timed deliveries are significantly more expensive than next-day deliveries. How soon does it really need to be there?
21. Couriers #4
If you help your courier company by minimising collection and waiting time, you become a more ‘attractive’ account, which can be a good negotiating factor.
22. Couriers #5
Look at instigating standard daily courier runs, which can be negotiated over and above the rate card.
23. Expiry can be expensive
Be aware of the expiry date on contracts for services such as electricity, gas, and phone. Suppliers often revert to a much higher penalty rate once the contract expires.
24. Freight costs
Consider handling costs and packing when putting together a consignment. Does it fill one container, or is it made up of several items that can be packed on pallets so that you can minimise transport handling costs and stock damage?
25. Investigate insurance
Allow time to investigate and negotiate your insurance policy before the renewal deadline. Make a note of when policies are due - many brokers wait until so close to the renewal date to contact their clients that they leave little time for negotiation.
26. Know your insurance needs
Have you worked out the latest level of cover you need? Is it more or less than last year? Can you cut out brokers, have your policy repackaged, or cap excesses?
27. Making space
Do not allocate a specific car park to a specific staff member. Have seven per cent fewer car parks than the number of staff entitled to them. On any day, you’ll find that there will be a certain number of absentees - you don’t need to pay for empty spaces.
28. Making the most of fuel cards
Have you reviewed your fuel card system? While most oil companies offer rebates, they do not do so in a directly comparable manner. Some will offer a rebate off the pump price, others choose different bases (eg, area averages) from which to make their rebate. Research will show which will work best for you.
29. Owning the office equipment
Take into consideration the total cost of ownership of your office equipment for the full life of each machine. Consider not only present needs, but future ones, before you purchase new equipment. Will new equipment offer a better, alternative way of doing things?
30. Office supplies #1
Decide on a comprehensive product range and stick to it. Be wary of ‘stationery cupboards’. While
Still looking for a way to improve your sales performance? The problem is that you’ve been going to the wrong places, talking to the wrong people and reading the wrong books. To get the right answer, you must know where to find it!The answers that you need to enhance your method and boost your sales will come when you stop relying on bad selling techniques that require you to learn a scripted sales approach, change your company’s sales copy, or try to overcome a price objection. Your customers DON’T care about these things. If you want to really engage your customers and stir up their motivation to buy from you, you must focus on what matters to them. The only way to get customers to buy is to know WHY they buy. Understanding what makes one person buy your product is the key to creating an effective sales approach for them and your next customer.The first important step in this process is to admit that you probably don’t have a clue why your customers do business with you. You’re so wrapped up in your company’s propaganda of why you are so great that you may actually believe it has somehow touched your customers. This is highly unlikely, and if you believe this, you have clearly lost touch with the REAL reasons people buy from you.Once you have come to terms with the fact that you don’t know why your customers buy, don’t make the mistake of going to your salespeople for the answer. If your salespeople knew, then your sales would be much stronger! Going to them with this question will only give you another salesperson’s perspective. Your customer’s real mot
10. Commit to stamping out unnecessary costs
Lead by example and demonstrate to employees that you care about saving money, even on the smallest items.
And now for the detail...
11. Advertising
Don’t just take their word for it: conduct regular research to ensure that your advertising budgets are being used effectively.
12. About the creative...
Remember that outstanding advertising creative work generally costs no more than ordinary creative. Having said that, ensure that you are not funding the creation of campaigns that win awards, but do not sell your product!
13. Bank charges
Review them regularly - at least once a quarter. Ask your bank manager to suggest ways in which you could reduce them.
14. Competitive banking
While it’s easy to be complacent and leave all your banking in the hands of one institution, it pays to shop around. Many banks specialise in different areas of expertise, and you can use that knowledge to serve your needs - and save you money. Plus, you won’t be fully dependent on one bank!
15. Challenge the manager
When you receive the statement of charges from your bank, take five minutes to consider ways in which the bank has added value to your business. Challenge the bank manager to come up with five himself - and ask yourself whether his list justifies the charges.
16. Cleaning
Ask your staff regularly whether cleaning services are meeting their requirements.
17. Communicate your needs
To ensure your cleaning contract - or, in fact, any contract, meets your needs, make sure the contractor knows what you expect. Let them know if there is a problem - but also give them feedback if things are going well.
18. Couriers #1
Understand how your couriers charge their clients. Some charge per consignment, others per parcel. Work out which service will be most effective for you and, if necessary, switch suppliers.
19. Couriers #2
What’s your courier company’s specialty when it comes to service? Some specialise in overnight delivery, other in international distribution. Use the courier that is most appropriate for the job, as this will be most cost-effective.
20. Couriers #3
Planning can add up to big cost reductions in this area. Timed deliveries are significantly more expensive than next-day deliveries. How soon does it really need to be there?
21. Couriers #4
If you help your courier company by minimising collection and waiting time, you become a more ‘attractive’ account, which can be a good negotiating factor.
22. Couriers #5
Look at instigating standard daily courier runs, which can be negotiated over and above the rate card.
23. Expiry can be expensive
Be aware of the expiry date on contracts for services such as electricity, gas, and phone. Suppliers often revert to a much higher penalty rate once the contract expires.
24. Freight costs
Consider handling costs and packing when putting together a consignment. Does it fill one container, or is it made up of several items that can be packed on pallets so that you can minimise transport handling costs and stock damage?
25. Investigate insurance
Allow time to investigate and negotiate your insurance policy before the renewal deadline. Make a note of when policies are due - many brokers wait until so close to the renewal date to contact their clients that they leave little time for negotiation.
26. Know your insurance needs
Have you worked out the latest level of cover you need? Is it more or less than last year? Can you cut out brokers, have your policy repackaged, or cap excesses?
27. Making space
Do not allocate a specific car park to a specific staff member. Have seven per cent fewer car parks than the number of staff entitled to them. On any day, you’ll find that there will be a certain number of absentees - you don’t need to pay for empty spaces.
28. Making the most of fuel cards
Have you reviewed your fuel card system? While most oil companies offer rebates, they do not do so in a directly comparable manner. Some will offer a rebate off the pump price, others choose different bases (eg, area averages) from which to make their rebate. Research will show which will work best for you.
29. Owning the office equipment
Take into consideration the total cost of ownership of your office equipment for the full life of each machine. Consider not only present needs, but future ones, before you purchase new equipment. Will new equipment offer a better, alternative way of doing things?
30. Office supplies #1
Decide on a comprehensive product range and stick to it. Be wary of ‘stationery cupboards’. While
It really won't matter if no one knows your product or service because you haven't branded your business correctly. Some companies and businesses spread their ad dollars around with direct mail, radio, broadcast and web. But without long-range branding plan you are wasting your time and money.The Age Old Branding QuestionLet's presume that you own a ‘brick and mortar’ jewelry store, plus you sell your products online. How do you convert casual browsers into buyers in both situations? I can say it in one word. BRANDING.People buy brands. A brand should represent everything you stand for. What do you think of when you hear the name ‘Tiffany’s’? Expensive, chic and elegance are a few words that come to mind.Ask yourself, How do you want people to identify with you or your brand? Find and identify a niche in your market and exploit it any way you can.Logos, Taglines, Mascots and AttitudeThe long-range branding of Nike has been a steady-on, unwavering approach. They show imagery with ambient sound effects followed by their familiar Nike logo swoosh. Sometimes they add the tagline, ‘Just Do It’. This is their branding attitude.Aflacs’ insurance commercials feature a bumbling duck. This cute, feathery, accident-prone mascot became the quintessential reason why you need to buy insurance - - their insurance. Aflac took this sleep inducing subject and made it entertaining and memorable.Local Branding Hero’sThe home town branding factor can bring you excellent recognition. Can you think of a restaurant,
18. Couriers #1
Understand how your couriers charge their clients. Some charge per consignment, others per parcel. Work out which service will be most effective for you and, if necessary, switch suppliers.
19. Couriers #2
What’s your courier company’s specialty when it comes to service? Some specialise in overnight delivery, other in international distribution. Use the courier that is most appropriate for the job, as this will be most cost-effective.
20. Couriers #3
Planning can add up to big cost reductions in this area. Timed deliveries are significantly more expensive than next-day deliveries. How soon does it really need to be there?
21. Couriers #4
If you help your courier company by minimising collection and waiting time, you become a more ‘attractive’ account, which can be a good negotiating factor.
22. Couriers #5
Look at instigating standard daily courier runs, which can be negotiated over and above the rate card.
23. Expiry can be expensive
Be aware of the expiry date on contracts for services such as electricity, gas, and phone. Suppliers often revert to a much higher penalty rate once the contract expires.
24. Freight costs
Consider handling costs and packing when putting together a consignment. Does it fill one container, or is it made up of several items that can be packed on pallets so that you can minimise transport handling costs and stock damage?
25. Investigate insurance
Allow time to investigate and negotiate your insurance policy before the renewal deadline. Make a note of when policies are due - many brokers wait until so close to the renewal date to contact their clients that they leave little time for negotiation.
26. Know your insurance needs
Have you worked out the latest level of cover you need? Is it more or less than last year? Can you cut out brokers, have your policy repackaged, or cap excesses?
27. Making space
Do not allocate a specific car park to a specific staff member. Have seven per cent fewer car parks than the number of staff entitled to them. On any day, you’ll find that there will be a certain number of absentees - you don’t need to pay for empty spaces.
28. Making the most of fuel cards
Have you reviewed your fuel card system? While most oil companies offer rebates, they do not do so in a directly comparable manner. Some will offer a rebate off the pump price, others choose different bases (eg, area averages) from which to make their rebate. Research will show which will work best for you.
29. Owning the office equipment
Take into consideration the total cost of ownership of your office equipment for the full life of each machine. Consider not only present needs, but future ones, before you purchase new equipment. Will new equipment offer a better, alternative way of doing things?
30. Office supplies #1
Decide on a comprehensive product range and stick to it. Be wary of ‘stationery cupboards’. While
This week I was involved in a situation where a salesperson that had lots of energy, didn't seem to be reaching the success or goals expected. It was clear that the sales activity was there. However, after listening and watching the salesperson in action. We knew the sales process wasn't being followed. The situation made me think about how easily we can slip into bad habits. In reality the salesperson may have achieved success if the clock were turned back 20 years. Back in the early years of this industry almost every business was a prospect. Every business needed the services they offered. Today, we need better hunting skills to become successful. There is tremendous opportunity in our industry with the right type of accounts. We must learn how to hunt for them and approach them successfully and then farm them for all they are worth.B2B Sales StrategyMost businesses that are faced with similar changes and developing any business is challenging. With s strategic approach we can locate, identify and target new customers that want our services. We essentially have two ways to generate business. One is through the process of hunting for new business and the other is farming our existing clients for new business. One truth is certain; when we focus on the customers needs, wants and desires we will achieve ours. When we focus on our needs, wants and desires, we will miss the target.Hunting or FarmingHunting is when we seek out new business and try to take business away from another company. The other method is to use our existing client base for r
25. Investigate insurance
Allow time to investigate and negotiate your insurance policy before the renewal deadline. Make a note of when policies are due - many brokers wait until so close to the renewal date to contact their clients that they leave little time for negotiation.
26. Know your insurance needs
Have you worked out the latest level of cover you need? Is it more or less than last year? Can you cut out brokers, have your policy repackaged, or cap excesses?
27. Making space
Do not allocate a specific car park to a specific staff member. Have seven per cent fewer car parks than the number of staff entitled to them. On any day, you’ll find that there will be a certain number of absentees - you don’t need to pay for empty spaces.
28. Making the most of fuel cards
Have you reviewed your fuel card system? While most oil companies offer rebates, they do not do so in a directly comparable manner. Some will offer a rebate off the pump price, others choose different bases (eg, area averages) from which to make their rebate. Research will show which will work best for you.
29. Owning the office equipment
Take into consideration the total cost of ownership of your office equipment for the full life of each machine. Consider not only present needs, but future ones, before you purchase new equipment. Will new equipment offer a better, alternative way of doing things?
30. Office supplies #1
Decide on a comprehensive product range and stick to it. Be wary of ‘stationery cupboards’. While they may seem an easy way to deal with this ‘chore’ item, they cede control of the ordering and stocking to the stationery company.
31. Office supplies #2
Try suppliers’ own-brand products. This can reduce costs by up to 40 per cent.
32. Order it back
Request that all staff hand back the unused items of stationery lurking in their desks. You may find that you do not need to re-order for many months!
33. Packaging #1
Standard cartons are much more cost-effective than special-sized ones.
34. Packaging #2
Review your packaging - invite suppliers to make recommendations for cost reduction.
35. Packaging #3
Printed cartons are expensive. Consider using plain ones, and sealing with printed tape instead.
36. Pesty business
Check the hours agreed for pest control services. If the supplier is charging more for after-hours service but using safe chemicals, it may not be necessary to have the services delivered when your offices are closed.
37. Pesty charges
Examine the charges from suppliers who have been in place for some years. Look out for them posting increases without changes in service specification.
38. Postage #1
Clean up your database to reduce returned mail and coordinate your marketing mail-outs to exceed threshold quantities.
39. Postage #2
Investigate alternate methods of information delivery. It may be that your message can be delivered via an alternate method to conventional mail (eg email), and there are companies that specialise in distribution methods to suit your preferences.
40. Printing #1
Do you really need printed envelopes, when plain might do just as well?
41. Printing #2
Always use standard paper sizes.
42. Printing #3
Order larger quantities at one time, but don’t get caught out. If you only need 7000 brochures, it’s still cheaper to order that number at $3.30 per unit than it is to pay for 10,000 at $2.80. Companies over-order to get the price down and then don’t use the stock!
43. Printing #4
One way to get the best out of volume-sensitive ordering is to print the items that require the same paper stock at the same time.
44. Records management
Don’t continue to pay for the storage of boxes simply because you haven’t worked out whether you need to keep them. Review!
45. Telecommunications #1
Be aware of flag falls or connection fees per call, and your call duration, when assessing telecommunications contracts. Most businesses have low call durations, which means the flag fall is a large part of the cost of the call.
46. Telecommunications #2
Treat loyalty discounts with caution. They usually apply to eligible calls only and amount to very little on your total bill. Check the fine print.
47. Telecommunications #3
Have you achieved any real savings on your phone bills over the past 12 months? How many lines do you really need? Asking yourself some questions can save you a lot of money.
48. Travelling light
Savings can be found in managing your travel well. Avoid last-minute bookings - you can save more than 30 per cent by booking weeks, not days, in advance.
49. Travelling often
If you or your staff are using a lot of hotel rooms, look at negotiating a better rate with one hotel chain.
50. Workers Compensation
Be aware of the rollover date on your workers comp insurance. The time to review the level of premium is before it falls due, not afterwards!
Making real changes
There’s a lot of food for thought in our list, but even more in this fact: experts estimate that 90 per cent of Australian businesses are overspending on day-to-day expenses - by as much as 75 per cent! Are you one of them? ERA suggests that if you answer ‘yes’ to any of the following, there’s a good chance that you can reduce business operating costs and free up profits.
Do you have a centralised purchasing system with each department having its own favourite suppliers and its own purchasing processes?
Do you always seem to be purchasing in an ad-hoc, as-needs manner?
Do you seem to stick to the same supplier and trust that they’re giving us value for money?
Got a yes or two in there? Don’t be disheartened. In fact, look at the positives: chances are there’s heaps of money to be saved within your company. Give ERA a call to find out how - and how much! ERA is an independent cost management consultancy and works on a ‘no savings, no fee’ premise. If they don’t find any savings for you, you pay nothing. You have nothing to lose - except a lot of unnecessary costs!
To find out more visit www.expense-reduction.com.au or call +612 9922 7999
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