Creative Cost Cutting

With the economy the way it is, I'm interested to hear about some really creative ways to reduce expenses. Obviously the first thing most businesses are cutting out in order to save, are luxuries -- no more fresh flowers on the reception desk, minimal magazine selection at the doctor's office, and lollypops to keep the kids quiet at the bank are a thing of the past. There have to be other ways to save that are less obvious. What are folks doing to to trim expenses?

Sell or donate unused office furniture and equipment.  You can sell it to employees, the public, or a vendor (on consignment). Donate it to local charities or schools.

Renegotiate your equipment leases such as change to a less expensive copier. See if you really need all your service contracts. It may be cheaper to pay for repairs as needed. 

Reduce phone lines. Cancel the optional features you don't use.

Buy ad space after the closing deadline. Newspapers and radio stations will often sell you unsold media at a discount. Have your printed ad or commercial ready to be delivered.

Ask your suppliers if they have any special discounts.You might be surprised!

The magazine subscription cut is one I had been thinkin about even though we accepted them as research for our gift shop.  Those subscriptions can add up!

Bonnie,

There are a few options that I can immediately think of that would help people reduce their costs. First seems simple but it can make a difference...turn off your electronics and lights when you leave your office. At a time where every cent saved is worthwhile, simple things like turning off computer monitors, overhead lights and lamps, and unplug any unused computers or electronics as they still drain a little power even being plugged in.

Secondly, avoid color printing as much as possible. Color ink costs more thank black ink so unless completely necessary, stick to the black ink when printing off meeting materials and such.

Consider turning the temp of your office down a degree or so and close off any areas that waste the heat/air from your building. A one degree change may not be noticeable to your employees/clients, but it will help reduce your overall energy spend. Another option here would be to set a timetable on your thermostat to run at a cooler temperature overnight to use less energy keeping the place at a steady temperature when no one is in the office.

As for marketing and promotion, consider less expensive methods of getting your message out there. Are there any forums or communities you can become a part of to engage with your customers more directly. Additionally, there are numerous sites out there that will let you publish quality articles at no charge as long as they are beneficial to the readers and not strictly self-promotional.

Lastly, if you do not have a web site for your business, now may be the time to consider getting information about your company out on the web. People are searching and browsing more than ever and a web site can be a really inexpensive way to get a larger audience for your business.

Also, I did a real quick search on this site and found a couple of articles that may also have a few ideas related to this topic.

A Few Ways To Cut Costs

Tips to Starting A Cost Reduction Strategy

I hope these help!

Sometimes cutting out small, unnecessary costs can help. Most employees can live without free breakfasts, holiday decorations, holiday parties and work-sponsored happy hours. Job stability is much more important.

I witnessed more creative cost cutting this weekend at my gym. They are no longer supplying towels to members for free at the front desk. Instead, the gym is now renting towels for $0.50, due to the number of lost or stolen towels. Although, I'm disappointed about this, it really isn't that much extra effort for me to bring my own towel. Meanwhile, the gym is not only saving on new towel purchases, I'm sure they are also saving quite a bit on their water and electric bills since they no longer need to launder as many towels. Passing on costs to customers can be risky; we need to be mindful of customers' expectations and loyalty when considering such cost saving measures.

What sort of experiences has anyone had with this type of cost cutting and how did your customers react?

I work for a small pest control company in northern New Jersey which has been hurt not only by the recession, but by over-saturation of the market and most especially by an actual decrease in the termite population due to unknown reasons (some say cell towers).  Anyway, we have found that barter clubs can be very helpful in saving money.  We have bartered everything from Yellow Page advertising to printing and stationery and truck repair. 

We can always use tips on money saving techniques.  I will definitely check back.  I love this sharing of ideas.  We can use all the help we can get in these very hard times.

Wow. Charging $0.50 for towel rentals. It almost seems like they'd get a better reaction if they just stopped offering towels altogether. I've noticed that my favorite BBQ restaurant has stopped serving their complimentary basket of butter rolls. I went specifically for those rolls, so I was a bit disappointed. It was probably better for my health that the restaurant did that though.

Talk to your vendors and ask if they need some of the services that you offer, and then offer them for free ... in exchange for a discount from them!

Transfer your long distant phone service to the internet using VoIP (Voice-Over Internet Protocol).

Look into certified refurbished computer equipment - available at most major computer manufacturer sites.  Who cares if the computer is last year’s model or has a dent or scratch, as long as you’re getting a good deal and it has all the functionality you need.