In business, the operating cost matters a lot. I’m sure I don’t have to tell you this, and you probably agonised over every single penny you spent in the infancy of your business. However, as the operation grows, and you have to worry about more and more factors, it becomes progressively harder to keep tabs on the amount of money you spend. Here, I’ve listed our best tips on reducing your costs as you scale your business.
Get Vendors to Fight over You
Make sure that your vendors that sell similar products know about each other, without rubbing their noses in it too much. When one vendor really feels the presence of a close competitor, you’ll be amazed by how much your pricing can improve in a short space of time. Even if you’re planning to stay with a certain vendor, the very fact that they know you’re in contact with their rivals can be enough to spark a big drop in their pricing. Let’s say you were running a construction firm, and looking to shave down costs on a bulk order like your hardwood crane mats. Call up your current vendor, and let them know that while you’d prefer to stay with them, you absolutely need to reduce costs. There’s no need to mention competitors directly; they’ll get the message!
