What do you think is easier to do ... reduce your expenses by 5% or double your food mart
sales? I think most would agree that reducing expenses might be easier. Why, then, do many
dealers spend little time on attempting to reduce expenses? Consider this: Your current
profit margin is 5% - if you reduce costs by 5% your profits double! Of course, you can do
the same thing by merely DOUBLING your sales! Right.
It is amazingly simple to reduce operating costs by a few percent by being diligent. This
article will provide you with a listing of some of the specific ways in which operating
costs may be reduced. You may find that you can reduce spending considerably by observing
only a few of the suggestions. And remember, the small stuff adds up! Think about saving
each time you spend and you will discover your own ways to save.
GENERAL GUIDELINES
1. Comparison-shop for everything.
2. Negotiate whenever possible. Ask! You will be surprised at how frequently a vendor will
negotiate a price. Attempt to negotiate EVERY purchase.
3. Utilize mail order. It's quick and frequently the best prices are available via catalog
sales.
4. Use the Internet to research a purchase. Nearly every vendor has a website containing
product, pricing, and ordering information. This can be a tremendous time saver. Also,
your research may lead you to a less expensive alternate.
LEGAL
1. Before you decide to pursue a legal course of action, consider the chances of being
sued in return! This might result in greater costs than you would receive from your
initial action.
2. Consider arbitration or mediation as an alternate course of action to resolve a legal
problem. This can produce quicker results at less cost.
3. Get your attorney involved early in any possible crisis.
UTILITIES
1. Monitor energy usage. Utilize auto-setback thermostats and auto-off light switches.
2. Have an energy audit performed by your local utility company. Their suggestions can
save you considerable expense over time.
3. Ensure all employees are "energy aware." Start a contest and give a prize to
the employee who provides the best suggestion for saving energy.
SHIPPING, MAILING
1. Educate yourself about the various postal rates. Visit the USPS website at http://www.usps.gov for complete descriptions of mailing
options and rates.
2. If you use a postage meter, ensure authorized personnel lock it when not in use. Note
that the Post Office will refund any machine imprints that were not used.
3. Plan your shipping or mailings to avoid overnight or second day delivery that is MUCH
more expensive than alternate methods. If you must ship overnight check the various
carriers as well as the post office for the best rates.
4. When providing customers with literature (sales, technical, other printed information),
use e-mail or FAX if possible.
INSURANCE
1. Ensure your company (or personal) vehicles are classified properly for maximum savings.
2. Review your various coverage's to ensure you are not "double insuring."
3. Do an annual insurance review to make certain you have coverage you need but are not
carrying something unnecessary.
4. Have an effective safety program! Just ONE workplace accident can send your insurance
rates skyrocketing.
5. Make certain that all employees are classified properly for workers' compensation
insurance. Rates vary widely.
6. Shop for all your insurance needs and periodically ask for competitive bids.
GENERAL
1. Monitor office supplies. My guess is that at any moment you have twice what you need!
2. Purchase office supplies from discount suppliers. Shop by mail. There
are numerous discount mail order suppliers. Get on their mailing lists so that you are aware of their sale items.
Time your purchases to take advantage of these discounts.
3. In general, extended equipment warranties are not worth the cost.
4. Monitor telephone usage. Shop carefully for your long distance and/or 800 number
suppliers. Prices vary widely as do the various fees.
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