Cutting costs: maximizing results

Costs are a necessary part of running an organization. There are so many vendor services to keep track of, sometimes it's hard to notice if you are paying too much for certain services. Cutting costs is a surefire way of limiting spend, increasing your bottom line and finding capital to allocate to other areas of your business.

Too often, I've seen companies that are disorganized when it comes to vendor procurement. Various individuals throughout the company are allowed to choose their favorite vendor, many times doing so because they receive special gifts or compensations from those vendors. This is an extremely inefficient way to select vendors.

There should be a department or designated individual that follows a formalized bidding process to procure vendors. This allows for healthy competition and puts your organization in the driver's seat to determine which vendor will offer the highest quality of services at a competitive price.

Cost savings generated through this method, allows you to pass on the savings to your clients which they would appreciate. Another benefit of operating this way is you can invest in areas of your business you weren't able to do before. This could be added to your digital advertising budget or employee perks to increase employee morale.

The bottom line is, there is many ways to decrease costs by negotiating with vendors and having a dedicated person in charge.

Valar Consult is a business consulting firm that offers expertise on digital marketing, commercial & media, training, process development & improvement, cost containment, revenue increase plans, strategic planning, subject matter experts and other services. Please reach out for a complimentary consultation.