8 Ways to Reduce Your Business Costs

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In hard economic times it can be more important than ever to know how to effectively cut the costs of doing business without giving up quality and service. Here are a few tips to help your business lower costs, save money and maximize revenue…

Buy in Bulk – You can save big-time by buying your business supplies in bulk quantities from wholesale warehouses, or through a mail order wholesaler. This is especially important for those supplies you seem to always run out of.

Look for Freebies – There are tons of websites on the Internet where you can find free software, graphics, clip art and services that could be beneficial to your business. Many vendors are also willing to allow you to “test drive” their equipment in return for advertisement or promise of future business deals.

Try Bartering – Trading goods and services with other businesses can save substantial costs and potentially strengthen your customer base if done smartly. Work out a deal for referring customers to and from the businesses you trade services with.

Networking – Provide value added services for other businesses or form a partnership to exhange customers and leads. This will dramatically cut your advertising and marketing costs. There is nothing more powerful than solid word of mouth advertising.

Borrow or Rent – Spending lots of hard earned cash on seldom used equipment can put a real strain on your bottom line. Consider borrowing or renting those items that are only needed occasionally. Save your money for more pressing needs.

Use Online and Offline Auctions – It is no secret that you can find great deals on online auction sites like ebay, but don’t forget about your local auction houses also. It’s easy to come across business supplies and equipment at substantially lower costs than retail. The next time you need something for your business, try bidding first!

Art of Negotiation – You should always practice negotiating a lower price for all of your business equipment and supplies. While it doesn’t always work, you would mst likely be pleasantly surprised at how many businesses are willing to get your long-term business and will cut you some great deals.

Plan Ahead – Go ahead and prepare a list of major expenses concerning supplies and equipment your business will need over the long term. Begin keeping an eye out for businesses that are having bg sales. Gradually purchase the supplies or equipment you will need as they go on sale before you need them. If you wait until you really need it to stay afloat, you will be forced to pay a premium price.

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