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Most cost savings aren’t dramatic — they’re hidden in plain sight.
If you’re running a business, you’ve probably seen your costs — materials, labor, insurance, utilities — increase at least 20% over the past few years, maybe even higher.
Producer price inflation came in “hot” in February at 3.4%, well above the Federal Reserve’s target. Tariffs are taking a bite. And war in the Middle East has spiked the cost of petroleum, which not only impacts the price of gas for your vehicles but will soon push the costs of other petroleum-based products like lubricants, solvents, ink, wax, dyes, paint, rubber and plastics higher in the months ahead.
How can you keep your costs manageable? The truth is that savings are hiding in overlooked operational areas. Here are seven ways you probably haven’t considered.
You’re probably overpaying for energy — and your utility company will tell you how to fix it for free
Most local utility companies provide energy audits for their small business customers. For example, my provider — PECO — offers customized reports and online tools to benchmark energy usage, incentives for better energy consumption, rebates for buying energy-efficient equipment and free energy assessments. They can also recommend products from lightbulbs to thermostats, which can better manage your energy usage. Contact your utility and lean on them for ways to cut your company’s energy costs.
Most businesses stick with the same suppliers for too long — and it’s costing them
Tariffs have increased costs for many of my clients, and yet few are proactively searching for alternatives. It’s easy to stick with the status quo, but in these volatile times, finding an alternative supplier could mean a huge difference for our profits.
To that end, consider the World Trade Centers Association to connect with foreign suppliers that may be in more tariff-friendly regions. Check out the Small Business Administration’s Make Onshoring Great Again portal to investigate domestic suppliers for your products. And spend some time both on both Alibaba’s and Amazon’s B2B portals, where you may find great deals on parts and materials.
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