| home |
| capabilties |
| jack baer |
| consumer clients |
| business -to- business clients |
| clients say |
| contact us |
| site map |
BY KATIE MULDOON
Want to hold the line on costs? Here are some practical suggestions
BY NOW YOU PROBABLY BELIEVE you've thought of everything you could to save your company's bottom line from the horrid effects of the latest postage hikes. And maybe you have. But with the U.S. Postal Service mulling even more rate increases before the end of the year (see Gene Del Polito's column in this issue), you're probably going to have to start thinking all over again.
To get you started, here's a checklist for both catalogers and non-catalogers. Granted, many of these suggestions already should be part of your management strategy. But too often, everyday firefighting may cause essential areas of cost containment to be overlooked.
Creative/Production
1.Trim the size of your catalog (or test eliminating parts of your mailing piece) in order to save on paper. Make certain it's not an obvious change unless it's part of your overall marketing strategy.
2. Have an ongoing dialogue with your printer and paper suppliers to get a better idea of where to find the best deals.
3. Consider locking in contracts (e.g., for paper) while low demand is driving rates down.
4. Keep in touch with your printer to become aware of the latest advantages in production and postal sorting.
5. Keep abreast of every postal discount possible through your postal representative, the usps.com Web site and a knowledgeable printer.
6. Consider eliminating the order form; some companies have tested and found no adverse effect. One key factor is how many orders you receive via phone, Internet and the mail.
7. Consider co-op ads (where manufacturers pay to advertise in the catalog). Be certain that this fits your marketing strategy.
8. Consider group purchasing arrangements; some companies have had success with this for printing and other production services.
Merchandising
9. Think about raising prices on some items. This can be touchy in today's value-conscious market, so evaluate what the traffic will bear. In some markets, higher prices can increase sales due to greater perceived benefit. Know what your competition is doing and act accordingly.
10. Try harder for lower cost of goods. Constantly evaluate the quantities you're ordering and the benefits of doing business with your suppliers relative to how this affects costs.
11. Bring back some of your old best sellers. This holds down product development costs and can ensure success.
12. Test products and establish strict quality control standards to avoid costly returns and reshipments.
13. Standardize shipping box sizes.
Mailing
14. Mail smarter. (It's not as obvious as it sounds.) Rethink how deep you want to go into marginal rentals, hit your house files more often, and work harder at getting enough names per segment to make postal discounts.
15. Take another look at your contact strategy to be certain you're not mailing too often. As one guru puts it, “It's customer relationship management, not circulation management.”
16. Test a solo or other type mailing against a catalog for regular, but less expensive contact and prospecting. This is especially cost-effective for some B-to-B catalogers.
17. Use e-mail in place of customer contact methods requiring postage.
Delivery
18. Reconsider your product delivery methods. Look at USPS vs. UPS vs. a host of other roadway resources.
19. Consider raising prices for postage and handling. Keep your costs in line with the competition.
Office
20. Rethink your phone carrier. Get several new estimates. Look at everything — office, mobile, Internet, ordering and customer service lines.
21. Re-evaluate every vendor contract and try to negotiate better terms.
22. Switch to energy-saving fixtures, especially for lighting and water. Buy timers for lights, heating and cooling. And see Energyshop.com for “energy information for business managers.”
23. Take discounts on payables whenever possible. If no discount is offered, consider extending payment beyond 30 days for better cash flow.
24. Comparison shop before you buy.
25. Closely monitor office supply purchases and long-distance telephone use.
26. Don't assume things have to be bought new. Consider used furniture, rentals or even bartering.
27. Be certain you're earning interest on any money you're not using (such as that in a checking account).
28. Deposit checks the day they arrive so the interest can grow immediately.
29. Check all banking costs; these may need to be negotiated.
30. Stay on top of late payments and get them in as fast as possible.
31. Know where your money is going.
32. Employ a smart accountant who's up to date on tax breaks.
Employees
33. Review your employees' medical benefits package. You may need to find another source or ask for employee contributions.
34. Cut down on business travel. Shop harder for better travel deals.
35. Set stringent policies on how overnight delivery services are used.
36. Encourage the use of e-mail rather than fax, phone, paper mail or overnight services.
37. Ask employees to suggest ideas that could save the firm money; instill in staff a sense of expense management.
38. Look into refinancing any mortgages on buildings. Address this matter now, while rates are low.
39. Make all bonuses specifically dependent on sales and profit goals.
40. Re-examine job descriptions to be certain you're getting