- July 18, 2021
- Posted by: Morgan Ayres
- Category: Cafe, Restaurant, Retail
How to Reduce Business Expenses for Your Retail Store, Café or Restaurant during and after the pandemic
The pandemic has brought unprecedented challenges to the hospitality and customer service industry. Lockdowns and closures have forced businesses to re-evaluate their expenses and make strategic decisions. While the news of a vaccine brings hope, the road to recovery will be long and businesses need to find ways to reduce discretionary spending to ensure they survive. The following tips will help you reduce recurring costs and improve your bottom line.
- Start with a Plan!
Before you begin negotiating price reductions, take a detailed list of your recurring charges. Look at your credit card statements and bank accounts to identify your monthly expenses. Identify areas where you can make the most significant impact.
- Negotiate with Your Service Providers for Lower Prices
Quick and easy to reduce recurring expenses for office phones, mobile phones, wifi services, televisions, and other services is to ask your service providers to lower their prices. They may have lowered their monthly fees or offer a discount to retain customers.
- Ask Your Landlord to Reduce Your Rent
If your lease is up for renewal soon and there are vacant commercial spaces in your area, ask your landlord to reduce your rent. If your lease is not up for renewal, ask your landlord if they will give you a temporary break on costs or allow you to defer the rent. If they like you as a tenant and have no one to replace you, there’s a chance they may give you temporary relief.
- Adjust your Ordering Strategy
Consolidating orders or breaking them down and finding a new supplier can save small businesses money. Buying goods in bulk increases your value to suppliers and boosts the odds of them giving you deals. You can negotiate cost per item or reduce your total shipping costs. However, avoid purchasing in bulk for inventory that is likely to expire or become outdated.
- Create Competition Among Vendors and Suppliers
Creating some healthy competition can keep costs down. Letting your supplier know that you’re pursuing other options is more likely to offer you the best deal possible—even if it’s not the one stated in your current contract. Shop around for another vendor if your vendor of choice won’t work with you on price. Ensure you maintain the quality you want to be serving your customers. Depending on your needs, you may be able to find multiple suppliers.
- Reduce Energy Costs
Reducing energy costs can save a considerable amount of money. Replacing old lighting fixtures with energy-efficient bulbs and installing energy-efficient appliances and equipment can reduce your utility bills. Turning off lights, computers, and equipment when not in use can also reduce energy costs.
In conclusion, by following these tips, businesses can reduce their expenses, which will help businesses not only survive in this challenging economy, but thrive!
The goal is to reduce costs while maintaining the quality of your products and services. Looking for help and support with improving your business – email us today for a free consult! Morgan@hospitalityconsulting.co