There’s an old maxim in sales: “Everything in life is negotiable.” Yet when business owners pair that concept with the term “fixed costs,” it is like combining an unstoppable force with an immoveable object. Not all costs have to be so darned stubborn. If you’ve seen your fixed costs rise over the years, you have options.
At SIB Fixed Cost Reduction we recognize that some expenses are simply part of doing business, but we maintain the attitude that even the most immovable of fixed costs can be reviewed. When looking to lower costs, it’s smart to turn over every stone, especially when we are here to do it for you. We’ll do most of the work, and you won’t even have to change vendors. We are skilled negotiators who know how to work with your vendors without ruffling any feathers, so your relationships are protected and even strengthened. Best of all, you pay us out of your found savings. If you want to take a look on your own, here are some suggestions.
Business Checklist for Fixed Cost Savings
Consider taking these steps on your own to reduce costs:
- IT and Telecom: Phone, internet, wireless phones, satellite and cable TV services add up. The “smart” side of your business—smartphones and other electronic devices—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 save money simply by switching from short to long-term contracts.
- Maintenance contracts are part of doing business if you want to keep things clean and well-conditioned. But they don’t have to drag your bottom line into the red. Examine each contract–everything from janitorial services to pest control–and see if there is room for improvement. Are all of your contractual provisions being met? 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 your business relies on logistics to fulfill your customer expectations. It’s wise to track high volume shipping and explore opportunities to cut expenses. If you know your stats, you can compare your services with those of other vendors. Reviewing different shipping policies, such as small parcel shipping, can also cut costs.
- Utilities really bite into your overall budget, so you want to review them carefully. Whether you use electricity, natural gas or other energy options such as propane, there is a lot of room for errors and incorrect rates. You may even benefit from utility expense management programs that lighten your workload and help you save money.
- Waste removal covers a lot of territory ranging from solid waste, organics and recyclables to hazardous and medical waste. Document shredding and storage can get costly, too. Depending on the kind of waste removal your company needs, there is more than one solution that works for your business. Ask what other companies are doing and talk to vendors regularly to check on pricing and services.
This checklist serves as a small sample of services that your business may use. For more ideas, look at the broad range of expense types that SIB is adept at handling. If you’re interested in learning more about how we can help reduce your business’ fixed costs and ballooning expense sheet, contact us.