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:
- IT and Telecom: Phone, Internet, wireless phones, satellite and cable TV…it all adds up. This is the “smart” side of your business—smartphones and other similar electronics—but the way businesses handle these expenses doesn’t always live up to the name. Review your contracts and subscriptions to see if you’re paying for more data and electronics than you really need. You may even be able to save money simply through switching from short to long-term contracts.
- Maintenance contracts are part of doing business—without them, you can’t keep a healthy and clean business running—but they don’t have to drag your bottom line into the red, either. Look at everything from janitorial services to pest control and see if there are ways you can experiment with other vendors or negotiate improved rates.
- Shipping and logistics can absorb a major part of any company’s expenses—particularly if you work in a company that relies on logistics to fulfill your customers’ expectations. With a lot of shipping volume to track, there are plenty of opportunities to cut expenses through checking different vendors and trying out different shipping policies like the ones found in small parcel shipping.
- Give your utilities a look over. Any business that has physical space has to deal with utilities; companies with large warehouses know this better than most. Utilities might seem like an “immovable object” to some, but they are always worth exploring.
- Waste removal can range from getting rid of old food in restaurants to document shredding in urban office environments. Check for different solutions depending on the kind of waste removal your company needs; you may even find that it’s better to outsource waste removal to another vendor if your company wastes too much of its own hours on the matter.
There’s nothing magical about this checklist; it’s simply a sample of all the services we examine here at SIB Development in order to check and see if our clients are overpaying on fixed costs. If you’re interested in reducing fixed costs and discovering new solutions for dealing with a ballooning expense sheet, be sure to contact us with a brief message to find out how we can help your company cut expenses—and thereby turn a larger profit.