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Cost control | |
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Alex Bucataru | Posted Mar 16, 2009, 8:52pm Everybody seems to be focused on cutting costs these days. When business is slow and new money is hard to come by, it only makes sense to try to hold on to as much as possible of what you already have. On the other hand, it is easy to hurt or even destroy a business by simply cutting one corner too many.
What is your experience? Where are you cutting costs in your business? Where you would not even consider doing it?
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Steff Lampman | Posted Mar 20, 2009, 2:02pm Cost reduction by other businesses is something that has definitely impacted the way I do business. One area that many of the business I work with have chosen to cut back is their general office supply spend. "Do we need to buy the name brand when the generic brand works just as well for a fraction of the price?"
A lot of the people I talk to have also found that by limiting their number of supply vendors to a single source they are saving time and money....and we all know that time IS money.
Another area that I have seen an adjustment in spending is strategic marketing. More advertising, more promotional materials, more trade shows, more time spent in the public eye means that when a consumer has a need, they are more likely to turn to the business that has visibility. Visibility = Health. People want to do business with healthy businesses because they will be there 5, 10, 100 years down the road.
However, there is a mantra that is being heard around these parts lately.....
"I Refuse To Participate In A Recession!"
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Alex Bucataru | Posted Mar 23, 2009, 7:09pm Very good points, Steff. I guess there is not much one can do about a shrinking demand for their products or services. What you can influence is your market share.
The fact that many companies are cutting costs unwisely can be an opportunity, especially if that includes your competition. "Be fearful when others are greedy, and be greedy when others are fearful" works outside the stock exchange as well. In these times, smart "greed" can result in increased market share. It may or may not mean an increase in sales or profits, but it certainly helps your bottom line and puts you in a great position for the next upswing of the market.
So, what are you doing to get a bigger slice of the shrinking pie?
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Greg Sloan | Posted Apr 22, 2009, 11:53am "I Refuse To Participate In A Recession!"
Fascinating..I have never heard that. As for a shrinking pie I think that depends on the business your in. Have people stopped eating sense the down turn? Have men stopped shaving? No..of coarse not. So if the sales market you are involved with is strong you can also be strong as long as your pricing is not carved in stone. Also if you have the ability to change your target market you can actually see your sales market as growing. As an example instead of boxing yourself in to multiple year contracts with one big company , you can offer one time services with several small businesses at the same time and bring in the same amount of sales in one day. It takes more work and planning but it does pay off.
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