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    2 Replies Latest reply on Aug 8, 2009 7:09 AM by Anderson1978

    A Penny Saved Is A Penny Earned.  No, Seriously!


      There are basically two ways to put your money in your pocket when it comes to your business: Increase your revenues or decrease your expenses. A fairly simple concept to grasp, yet quite elusive to accomplish, right? Well, maybe. Let's break down these two concepts...

      A) Increase Your Revenues - How Can You Do It?

      1) You can increase your prices. Of couse, you do this at the risk of selling less products. Trying to predict elasticity of demand in retail can be a tricky thing.
      2) You can sell more product. Well, if that were easy, every business would go ahead and do that one day one. You can advertise, you can do coupons, specials, etc. Let's face it, all those concepts take time and move at glacial speed. There is no quick way to boost revenues without eliminating profitability.

      Conclusion: Increasing revenues is a long term process that depends on constant networking and marketing. There is no "easy" way to do it.

      B) Decrease Your Expenses - How Can You Do It?

      1) You can comb through your current expenses and replace your suppliers with someone who can do it cheaper. But that might sacrafice quality, so it may not be ideal.
      2) Go through your current expenses, and identify ways to cut expenses without compromising service or quality. Maybe you haven't reviewed your merchant services plan in a while. Can you order supplies in bulk in order to get deeper discounts? Are you paying for services that you once had a need for, but no longer use? Are your current vendors over-charging you simply because you haven't kept them honest by sending out the occassional RFP? While this is the best way to cut expenses, it can also be time consuming, and would take you away from running the daily operations of your business.

      Conclusion: Cutting expenses is a fast and almost instant way to improve your bottom line. If you don't have the time to manage the process, the solution is to bring in an Expense Reduction Consultant like Bottom Line Consultants. Our firm is100% performance based. This means that unless we can demonstrate real cost savings to your business, there is no fee.

      For anyone who has an interest in our services, please visit