How to Save Money in Your Business Now
Let’s face it: it’s currently a buyers’ market… and despite your initial reaction, believe it or not, this is actually great news for your business. Why? Because to all of your suppliers, YOU are the customer – and you can start using the current market conditions as an opportunity to flex your buying power and start reducing your business expenses right away.
Over the past few years, searching for a new supplier, manufacturer or service provider was probably a very time consuming task in your business. Most of the time, it’s an activity that is done once and then forgotten. As times change, prices fluctuate. Services either get better or worse. What happens all too often is that prices rise but the service stays the same… but you never took the time to stop and evaluate the situation before.
In these harsh economical times, it’s now more important than ever to renegotiate with old suppliers and shop around for new suppliers. Service providers provide a good example of suppliers willing to negotiate with their customers. Telstra, Optus and other companies alike are always trying to beat off their competition by offering a better package.
Take this example on how to save:
a small business owner on the Gold Coast had been an Optus customer for 11 straight years. Telstra constantly rang him trying to offer him a better deal. So what did he do? Accept? No. As a customer he flexed his muscles and went back to Optus, asking them to beat Telstra’s offer. In this situation Optus said they would beat Telstra’s offer in order to keep him as their customer.
Now imagine how many of your suppliers would do the same if only you asked them? Either way it’s still a win-win scenario: if Optus hadn’t budged on their price, the business owner still had the option to simply go with the better offer from Telstra.
Getting Supplier Savvy – What You Can Do Today:
- Get quotes – Shop around even after you buy
- Negotiate – Ask for a better deal with your current supplier or provider
- Find companies that will match prices
- Don’t be afraid to change your supplier or provider if there is a better offer
- Keep your ears and eyes open – you are bound to find a better offer. Companies are always evolving, improving costs and rolling out new services.
- Negotiate big discounts for cash payments – you may be surprised to find how willing cash-strapped suppliers are to accommodate their valued customers.
Remember, the bottom line is that your business IS a customer. Expect to be treated the same way that you treat your customers, and if that’s not the case, it’s time to kiss the relationship with your current supplier goodbye – no matter how long-standing the partnership. If you are prepared to go into battle, you can truly save big dollars on your expenses and costs of your goods sold, that when added together can have a huge impact on your cashflow and profitability.