5 ways to combat rising costs for your business
Businesses are always looking for ways to cut costs. However, it’s also important that this doesn’t come at the expense of cutting quality.
This can be especially hard when external factors are at play, often driving up costs with nothing much you can do to prevent it. Our communications partner Vodafone has come up with five useful ways that you can manage rising costs, whilst maintaining quality and driving business growth.
Use technology to your advantage
The right technology can work wonders for your business operations, cutting costs whilst saving time, energy and stress.
There are so many different technologies that you can implement into your business that help you manage customer relationships, drive automation and deliver detailed insights so you can build better products and services, that in the long run boost sales and lower costs.
Revisit your supply chain
Is there unnecessary waste in your supply chain? This can be pretty costly to businesses of any size.
Conduct a review of your supply chain strategy. There might be quick wins that can be achieved easily. However, whatever costs you can save from your supply chain, make sure that you maintain focus on your customer, or even areas for long term changes that could promote cost saving.
Negotiate contracts
Revisit your contracts across the business and check whether there’s scope for change.
Some agreements, such as property and equipment leases, may have room for flexibility, whilst being transparent with suppliers if you’re having cash flows may take the pressure off.
Businesses often just want to ensure that they will receive payment at some point so opening lines of communication early is key. Negotiating isn’t about getting one over on another, it’s about reaching a mutually satisfactory outcome.
Have a clear understanding of what you can and cannot accept, do your research and don’t leave conversations to the last minute.
Set new prices
You might resist increasing new prices out of fear of upsetting your customer base, however sometimes it is inevitable.
Be honest with your customers, communicate these changes and explain why prices are increasing, giving them fair warning and thanking them for their continued business.
If you offer a high-quality product and great service, you will find that many customers are willing to pay more and remain loyal.
Invest in your business
Spending in the right areas can save you money in the long term.
Look at areas which need improvement and futureproof them with savvy investment that benefits your customers and your employees.
Invest in your business
Discover how our wide range of business solutions, such as telecoms, can help you tackle rising costs and drive innovation.