Post a new topic
    4 Replies Latest reply on Jan 29, 2009 10:53 PM by tricia_morley

    Solutions

    The Expert Adventurer

      Here is a way we saved money.

      1. We found that land lines are very expensive and we are better off using cell phones

      2. Advertising - look for web sites that offer FREE postings - Example www.TheBestCityGuides.com

      3. Keep all the contracts you have and the dates they expire. We just found out that one advertising agency has automatically renewed ours for another year - without asking us. (it is in our initial contract in very small print...)

      Any other ideas ?
        • Re: Solutions
          bmt2008 Adventurer

          While we are in an economic downturn, there are still several opportunities to reduce costs.

           


          This is a great time to renegotiate service contracts with your vendors and suppliers. Go through your income statement item by item to see if there are costs that can be restructured.

           


          Start inside your business - i.e. your phone and internet services, office supplies, rent, equipment leases, dues and subscriptions, etc, etc, etc. Look for ways to not just reduce these, but to position them more favorably for your firm (e.g. get more for the same costs).

           


          Then look outside your company - marketing and advertising, inventory purchases or trade goods and service purchases, shipping or any and all costs item. Look to renegotiate with these vendors and suppliers. They are also feeling the pinch in this economy and I can guarantee you that they would rather keep your business at a lower rate than lose you all-together. Should one of these partners not want to renegotiate, then this is a great time to shop around for a new vendor who is willing to help you as you help them. Lastly, think long-term.

           


          When you renegotiate try to create the best deal with the longest term possible. This not only shows this partner that you are in this for the long haul, but will better position your company when the economic recovery begins and prices and costs start to trend back up.
            • Re: Solutions
              The Expert Adventurer
              Send a letter to all your vendors that you do not wish to automatically renew your contract with them

              I just found out that most of them have a clause that states that if we do not send a letter to them they have the right to renew the contract without informing us. We just got stuck with an advertising contract that we were planning to cancel this year because of this clause.
            • Re: Solutions
              GambitX Newbie
              Consider how various equipment is used, particularly wireless devices. Do you really need unlimited broadband? How much is actually being used and is there a less expensive plan to accommodate that use? For that matter is free Wi-Fi available in your area, or easily accessible in the areas you travel? Are you making a lot of 1-minute cell phone calls? If so, you can save money (and time) sending a text message instead. GPS systems can be replaced with GPS applications on your handset (saves on subscription costs).
              • Re: Solutions
                tricia_morley Newbie
                I'd go one step further regarding contracts with agencies and suggest that these be renegotiated to a pay-as-you-go basis. Unless you're a large company, contracting for a broad range of services, you should not require a retainer-based agreement with an advertising or pr agency. Rather, ask for a breakdown of the specific services you anticipate you need with estimated hours and associated costs. If the agency is eager for your business, they'll be happy to do this for you.

                Having served on the corporate side for many years, where I engaged a wide range of agencies, I came to the conclusion that retainers do both the client company and agency a disservice. The client often believes it is paying for more than it's getting, and the agency's reputation can suffer accordingly.

                Tricia Morley
                Fresh Edge LLC
                www.fresh-edge.com