| How To Cut Operational Expenses / Useful Tips | | | | * For instance, if the weight is not stated on a |
| For The Small Business | | | | package, some shipping companies will charge |
| When it comes to cost management, it's the | | | | customers for a five-pound parcel. To avoid this, |
| everyday expenses that are most often | | | | preprint air bills with one pound, and most vendors |
| overlooked by small businesses. Experienced cost | | | | will adjust the poundage if the package weighs |
| management consultants like AMK Associates in | | | | more or less. |
| New York often start with these overlooked | | | | Printing |
| items to give their clients an immediate boost to | | | | * If your letterhead text won't change the same |
| their bottom line. Here are some simple tips for | | | | for a six-month period, print in bulk. It saves both |
| cutting your operational expenses without | | | | money and time. Don't worry about storage; |
| compromising quality or reducing your staff: | | | | most printers will store the inventory and ship at |
| Office Supplies | | | | no additional cost. |
| * Use generic versus brand names whenever | | | | * If your printer won't store it for free, negotiate |
| possible. Many brand name suppliers make generic | | | | storage and shipping into the overall price of the |
| versions of their products, so you won't sacrifice | | | | print job. |
| quality. For example, use 3M's Highland Self-Stick | | | | Telecommunication |
| Notes instead of their Post-It's notes and save | | | | * If your total telecom costs for both voice and |
| more than 50 percent per unit. | | | | data are $3,000 or more, consider a T-1 |
| * Always ask for a price break. Most vendors will | | | | connection. While you will be charged a recurring |
| not quote you their best price unless you ask. So | | | | monthly fee, your per-minute rate will be |
| ask! | | | | significantly lower. |
| Equipment Leasing vs. Purchasing | | | | * Check to make sure your phone company is |
| * Buy anything small enough to set on your desk; | | | | charging you in six-second increments. If not, you |
| otherwise, lease it. Leasing gives you the option to | | | | will pay for a full minute for every fax you send, |
| upgrade or downgrade, depending on your needs | | | | even though it transmits in seconds. |
| and changes in technology. | | | | Service Contracts |
| * Keep leases under 36 months. Buy smaller | | | | * Don't automatically get costly service contracts |
| equipment such as fax machines and printers | | | | for every piece of equipment. You may find it |
| (Brother and Epson are great); while their prices | | | | more cost-efficient to simply pay for time and |
| constantly drop, the technical capabilities do not | | | | materials; even as much as $175 per hour if |
| change significantly. | | | | repairs are necessary. |
| Messenger Services | | | | * Some service contracts are advisable, but be |
| * Analyze where your packages are being | | | | cautious. For example, most telecommunication |
| delivered | | | | contracts include the PBX (console), as well as |
| * Then, negotiate a broader delivery range and | | | | each individual telephone. Though it is advisable to |
| pay a fixed price. | | | | insure the console, there is little need for insurance |
| Equipment Insurance | | | | coverage on the phones. |
| * All leasing equipment companies automatically | | | | The Bottom Line |
| charge for insurance, even though your current | | | | By making these minor purchasing changes, you |
| policy may already cover it. Register your leased | | | | can cut your operational expenses significantly. |
| equipment with your insurance broker so it can be | | | | Cost management consultants can uncover |
| added to your current policy. | | | | additional savings by analyzing other expense |
| * Then request a Certificate of Insurance (COI) | | | | items, designing more efficient systems and |
| from your broker, and submit it to the equipment | | | | aggressively negotiating with vendors. It's tedious, |
| leasing company. Otherwise, you will double your | | | | meticulous, detailed work that many small |
| insurance charges. | | | | business owners and managers would rather |
| Shipping | | | | avoid (much like filing income taxes). But just like |
| * Handle shipping costs on a case-by-case basis. | | | | income tax filings, business owners can offload |
| Know the shipping policies of each vendor and | | | | the work to experienced cost management |
| choose the best vendor for each item to be | | | | consultants to keep their focus on running their |
| shipped. | | | | businesses and maximizing their bottom lines. |