We’re not alone when it comes to getting the “squeeze”! It’s all around you – higher gas prices, pending winter fuel price increases, rising food prices, increases in Internet service, changes to credit policies, the list is endless and growing.
It is not surprising that many businesses are trimming down, cutting back or being forced to raise prices to offset the increase in costs to just stay in business. So what can you do, anything to stay profitable in this changing and shifting business climate?
Here are a few tips to help you weather the storm and stay profitable.
1. Trim your overhead first any way you can before you automatically consider a price increase passed on to customers. It may be as simple as moving from 24 pound paper to 22 pound paper, not ordering office supplies that simply sit on the shelf – ordering only when needed, to installing a programmable thermostat in your office. Trim where you can smartly first.
2. If you do feel that you must raise your prices to cover your overhead, be sure that you can afford to do so. It is naturally for some clients to simply decide to chop your services when you increase prices. If losing any clients will mean real trouble for you, consider layoffs, payroll cuts, and dropping perks before raising your prices first. For some raising prices may simply mean better efficiency and improved quality of life, for other raising prices may start a downward spiral that will be hard to stop.
3. Work smarter, try to share the load when you have multiple tasks. Here’s one example it may be more cost efficient to turn over routine reporting tasks to a person who you will pay $25/hour to and then have the higher paid team members start an ad on selling program to existing clients with their new free time. Make sure that all clients know about your service offerings. You may be able to very easily pick up extra business with a few phone calls offering expanded services to your existing client base. You may even want to consider adding services to your offerings to complement what you do sell or provide now looking to sell more to the clients you do have now.
Anyway you look at it, the business client is tightening, pulling in, and adjusting. Make sure to look for creative options before you try to put the “squeeze” on your own customers.