50 WAYS TO CUT COSTS AND INCREASE PROFITS referat








1. Buy frequently used products in bulk.
2. Whenever possible, fax it before you discuss
3. Purchase a fax switch and remove the dedicated telephone lone.
4. If you communicate by modem purchase a new one that speeds up communication.
5. Monitor long distance telephone charges - include them in charges to customers or insure that they are included in overhead.
6. Plan now to hire students in the summer or for peak periods.
7. Ensure heating is turned down on week nights and reduced more on weekends.
8. Turn off all unnecessary lights.
9. Have office cleaning staff reduce visits to once every two nights instead of every day.
10. Ensure faucets are not leaking.
11. Turn down hot water settings 10-20 degrees.
12. Retrofit toilet reservoirs to use less water per flush.
13. Cut vehicle car washes to half.
14. Ensure that postage for parcels is correct by using weigh scales.
15. Encourage the reuse of newspapers, paper for draft copies, boxes, incoming Styrofoam packing for outgoing packages.
16. Photocopy paper on both sides for client newsletters and other mailings.
17. File taxes on timeconsider municipal, provincial, GST, PST and Federal to avoid penalties.
18. Review subscriptions to newspapers and periodicals to avoid duplicationsset up a procedure to distribute single copies.
19. Use reusable interoffice envelopes and re- address rather than use new ones.
20. Increase the deductibles on office business insurance policies.
21. Negotiate for discount vehicle fuel through bulk buying or centralized purchasing.
22. Consolidate credit card outstanding balances with a line of credit to reduce interest charges.
23. Renegotiate your premises lease.
24. Consider refinancing loans at old rates for new, lower rates.
25. Review credit card membership costs and cancel redundant cards.
26. Negotiate better deals on maintenance contracts such as grass cutting, window cleaning, carpet cleaning and uniforms.
27. Entertain at your home or office rather than at restaurants.
28. Encourage customers to pay cash rather than use charge cards.



29. Pay bills that provide discounts on time.
30. Use refillable cartridges for photocopiers or laser printers.
31. Purge old files into cardboard storage boxes to free up space.
32. Review heating methods used to determine if conversion to other fuels, different furnaces or suppliers would reduce costs.
33. Review the effectiveness of advertisement in newspapers, trade magazines or monthly mailers. Is there a more effective, less costly means to reach your market?
34. Eliminate bank account that are no longer necessary.
35. Get your accounting up to date for tax planning for both company and owners.
36. Ensure all withholding taxes for employees are paid on time.
37. Review Workers Compensation rates. Be sure that adjustments are handled promptly to provide credits.
38. Schedule regular maintenance on key vehicles, computers or other productivity enhancements to avoid expensive down time.
39. Consider installing a telephone answering machine rather than an answering service.
40. Inquire into government funding for training.
41. Review accounts payable for large debit balances. Use the credit or request refund.
42. Review vehicle usage for the next six months. For idle vehicles, investigate not renewing licenses and redefining insurance coverage.
43. Review vehicle insurance policies and drivers' records. If high risk individuals are no longer driving, is a reduction in premium possible?
44. Review inventory. Is it possible to use old stock that has been forgotten?
45. Reduce rent and overhead by sharing space and facilities with a complementary business.
46. Review mailing lists and remove customers that have not placed orders in the last 2 years or have moved outside your area of service.
47. Plan service calls and drop in visits to customers to correspond with other visits.
48. Combine small shipments/orders to take advantage of lower freight rates.
49. On out of town projects, consider staying at non franchised hotels/motels. More than likely the rates will be lower than the corporate rate at major chains.
50. Make production personnel responsible for quality control and routine maintenance.









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