How do you increase your bottom line? There are two options – increase prices or save costs. Here are five easy tips to cut down on some costs in your business.
1. Be informed of your options
Service providers and suppliers often offer discounts if certain requirements are met. Be informed of your options and how feasible they are. Remember that your suppliers and service providers are also looking to grow their businesses and may be willing to negotiate. It could be a win-win situation for all parties. Open communication regarding payments can strengthen you relationship with the company and that is an invaluable asset.
2. Account for ALL costs and be aware of hidden costs sure you know what the options are, and if it might be feasible for your company
As part of the value chain, suppliers and service providers are also looking to grow their businesses and are open to negotiation. It could be a win-win situation for all parties.
All statements and bills should be examined well to ensure that businesses are only paying for the absolutely necessary services. For example, ensure that the business is not paying for a premier service when the standard option will suffice. Also ensure that there are no hidden or extra costs charged for a service which may not be necessary, such as additional admin costs.
3. Shop around for competitive rates
Due to the constantly changing environment, businesses ought to constantly be searching for better deals, especially in highly competitive industries such as the banking and insurance sector. Businesses should shop around to find out what competitors in these industries are offering and if a competitor's price is lower, a supplier may potentially negotiate their current rates.
4. Ensure all electronic payments are streamlined
Businesses should plan their online banking transactions so that they are streamlined and take place during one or two set periods during the month. Many businesses do not realise that they are charged for logging on to an online banking portfolio and charged for each batch of payments.
5. Make use of platforms that can minimise costs to the company
Often using one central platform, instead of going through various different suppliers, can cut significant costs for a company. Banking costs can be a significant cost to businesses and by snaking use of a platform, such as SureTransact, which develops, provides and supports electronic fund transfer (EFT) processing for businesses, can enable a business to potentially save up to 60 percent of electronic transactional banking fees.
The content in this article was provided by Gerrie van Biljon, Executive Director Business Partners Limited, and first published in the Cape Argus Newspaper – June 2013.
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