Cost Cutting Ideas From the Experts
Companies are always looking for new ways to reduce costs, especially during a down economy. It seems as if we have hit a plateau in terms of cost reduction in labor productivity, but what’s next? Joseph Szuba, President of National Cost Reduction Corporation, has the answer.
“Nearly every business, regardless of their industry, has supply costs. What most don’t know is that significant savings can be made in non-labor costs, without changing how the company operates. There is almost always a way to lower prices with existing suppliers, including a few that no one would think to challenge,” says Szuba.
The area Szuba and his partner find that companies don’t negotiate cost reduction with most often? Utilities. “Most people don’t know that you can save money and change the price of commercial utility costs in both electricity and natural gas. Even if the price is lowered by a small fraction, in the long run, that yields significant savings,” says Szuba.
It doesn’t end with utilities. Szuba also says there are savings in credit card transactions and freight – both in-bound and out-bound – costs. For example, companies that take Mastercard or Visa as payment can negotiate with the third party and reduce a small percentage.