Know some strategies to reduce costs without cheapening your brand!

There are some possible strategies that can be implemented to help reduce costs without affecting or cheapening your brand, product or service. Among these strategies is the reduction of commercial expenses, in a way that does not affect the quality and, in turn, may benefit our accounting and even the clients.

Look at the energy costs

This can be an excellent way to help a company reduce costs without sacrificing any quality. Companies, both small and large, can implement a similar strategy by installing solar energy, using an energy purchase agreement, renting land or roof to solar energy suppliers, installing efficient appliances and indoor lighting or doing an energy audit and implementing the recommendations to this respect.

Buy more quantity or more frequently

If it works for buyers, it can also work for business owners. To reduce commercial expenses, without sacrificing quality, orders can be placed in large or larger quantities, in order to reduce the frequency of orders and, therefore, what would be a more expensive expense with shipping rates, procedures or possible rappels.

Find less expensive suppliers

You may do better if you operate with lower-priced suppliers that do not affect your brand, product or service. For example, you could choose cheaper office supplies, employee uniforms, computer equipment or telephony equipment.

Remove unprofitable customers

Many companies can stop working with clients who pay badly or offer incentives to customers who pay well. The issue is to focus on the clientele that offers greater profitability for the business.

Outsource some tasks

Do you start to feel that your company is a human resources company? You know, because you spend a lot of your time managing the paperwork of human resources, instead of dedicating yourself to growing your business. As entrepreneurs, sometimes we want to do everything ourselves because we want to have control or we want to guarantee quality from accounting to recruitment and payroll; the tedious work that must be done to keep a business running.

But what we do not realize is that when certain processes take too much time away from productive work, that add value to your service or help with sales, so those processes are costing or subtracting money from your business. Therefore, to reduce business expenses without harming the product or service, you can outsource processes that take up too much time.

Reduce defaults

Do you work for clients who pay late? If you are not in the loan business, so you can start charging interest or fees for late payments to customers who have outstanding accounts. That should offset the losses and help reduce business expenses.

Move quickly

Time is always affecting money. Once you have some cost reduction strategies in mind, start implementing them immediately. In other words, it is necessary to establish cost reduction objectives with an eye to the calendar; concentrating on what can be done, not on the ideas that take time or are expensive to carry out.