A penny saved is a penny earned. Cutting costs at your small business can be just as good as increasing revenue and will have the same impact on your bottom line. Here we’ve outlined four great ways your small business can save money.
“Whenever you’re purchasing items, especially expensive ones, it’s best to do your research and price compare so that you know that you are getting the best product at the best price.” Comparison sites such as Price Grabber, Price Runner, NexTag, and Shopzilla offer an easy way to research the best price on a variety of different items. When making equipment, furniture, or inventory purchases, it is a good best practice to consult one of these sites to ensure you’re getting the best price available.
The Barter System
“As a way to sidestep using up all the business’ cash, an increasing number of companies are beginning to use the bartering system. Bartering, by definition, is “the action or system of exchanging goods or services without using money”.” Developing relationships with local businesses that sell need items for your business can help you get a better deal by using the barter system. Offering items that you purchase at wholesale prices in exchange for items that you typically pay retail for can save your business a tremendous amount of money while providing value to both businesses.
“When is the last time you renegotiated pricing with your suppliers? It’s one of the best ways to decrease your expenses so you can realize more profit in your business.” Inventory is likely one of your major expenses, so cutting down your costs by negotiating with your vendors is a great way to improve your bottom line. Research different local vendors and typical bulk pricing rates for your items and approach your vendors with a well-thought-out negotiation strategy. If your purchase volume has increased significantly since the last time you negotiated prices, this can be used as excellent leverage to get a better deal.
“Thrift shops, garage sales, pawn shops, and dollar stores are great sources of savings because there are some things that you just never need to buy new, not even in good times.” Items like furniture, decorations, tools, and some equipment are best purchased used whenever possible. Refurbishing items on your own can save you a great deal of money compared with buying new, and some items get better with age. Essential equipment is best purchased new as they often come with warranties and are more reliable, but there are many items that simply don’t need to be purchased new.