If you’re reading this, then it’s safe to say that you’ve done alright with hotel asset management through the years. As the hospitality industry ushers in a predictable era of decelerating revenue increases, you understand that increasing net operating income (NOI) is the only surefire way to fight a flat-lining RevPAR and enhance asset values. But even the best players can’t win it all by themselves. There’s NOI in team. The harsh reality is that there are hidden expenses within all property management operating costs that can be reduced if organizations could only put the right people on the sidelines.
There is hardly a company in the world that isn’t under continuous pressure to reduce or minimize costs while simultaneously striving for growth. Executives feel it. Purchasing departments feel it. Managers and even entry-level staff can feel it. The continual drive to do more with less has resulted in various techniques that look like good solutions, but they can be very difficult to accomplish, and at best only deliver a fraction of what a company’s total savings could be.
SIB has recently release a whitepaper exploring some of the common hurdles all companies face when trying to reduce unmanaged spend, providing unique solutions on how to get the job done more effectively. Download today!READ MORE
You look at your balance sheet, ready to tear out your hair.
“Where is all of this money even going?”
It’s one of the most common questions for a businessperson who needs to slash costs and steer their enterprise back towards profitability. And if you find yourself wondering the same, it may be time to break down your expenses down by individual costs—and maybe uncover some costs you haven’t heard of in the process. Here are some of the most common unknown costs when we work with companies:
There’s an old maxim in sales: “everything in life is negotiable.” Yet when business owners pair that concept with a phrase like “fixed costs,” it sounds like pitting an unstoppable force against an immoveable object.
Fortunately for businesses that have seen their fixed costs inflate over the years, not all costs have to be so darn stubborn.
One of the key steps of working with SIB Development is when we come in to review your fixed costs. Although we recognize that some expenses are simply part of doing business, we also adopt the attitude that even the most immovable of fixed costs can at least be reviewed. If you don’t want to leave any stone unturned in your company’s books, then go through this checklist for saving money on your fixed costs:
If someone reached into your pocket, took out a wad of $20 bills, and ran away, you’d appropriately take immediate action and call the police.
But what about the money your business loses every day?
Sure, you can’t exactly call the police due to your business expenses, but these costs can represent bigger losses than mere increments of $20. For some businesses, hidden costs can be the difference between red and black ink. And if you know where to look for these hidden costs, you can take the “immediate action” you’ve been lacking every day at your office. Let’s identify some of the most common hidden costs we come across at SIB Fixed Cost Reduction.
“If I only had more money…”
Have you heard that before? It’s the refrain of the frustrated business owner. In fact, you might have told yourself as much when reviewing your monthly expenses, wondering where all of the charges could possibly be coming from. Then, with great pain, you write the checks, sign them, and spend another month wishing you could only earn more money.
But what if there was a simpler solution? What if you could simply reduce your expenses quickly?
We know: you have contracts and obligations, and lowering costs isn’t always so easy. But you’d be surprised at what you can do once you know the right ways to reduce expenses, including the following cost savings ideas for businesses:
We’ll be the first to admit it: the word “audit” can be a little scary.
Fortunately, we’re talking about a business expense report audit: examining your outgoing money and bills to see where you can identify some savings and help improve your bottom line. There doesn’t have to be a single scary thing about it.
Still not convinced? Okay, fine: let’s look through some of the most common positive discoveries we make when we at SIB Development work with companies to examine how they can save money on their business expenses.
Most organizations larger than a home office have some type of business phone system. A phone system is also referred to as a PBX. Because they can be costly items ranging from $2,000-$200,000, they are often sold with Maintenance Contracts. These are similar to “extended warranties”. Part of what a maintenance contract promises is not only free replacement of parts, but also no-cost labor for that repair. Sometimes a faster level of response time is guaranteed in the agreement too.
Among people familiar with the Telecom industry, it is commonly believed that many phone bills contain errors. These errors usually favor the provider. Moreover, many mid to large sized businesses have services that are not being used.
Even if you agree with the above statement, the complexity of self-auditing the phone bill may seem a daunting task. In this article we look at some simple tools and techniques you can use to conduct a pre-audit of your telecom environment to see if there is a large discrepancy between what you think you owe versus what the phone company is billing you. At that point, you can decide if having a consultant or technician conduct formal audit is in your best interest.
We all know how annoying telemarketing calls are in our personal life. They conveniently seem to come in the middle of the family dinner hour, or just continue calling incessantly throughout the day. But moreover, the telemarketers are just as tenacious at disturbing us at work as well.
In fact, places of business are much larger targets for telemarketing calls because there are so many more opportunities to sell to a business. But all those unwanted calls waste valuable time, disrupt work flow. And, since time equals money, they are wasting our money.
Therefore, practicing defensive measures to thwart telemarketers is a way of putting money back in your pocket. READ MORE