Each of us who runs a business has fixed expenses: rent, telecommunications, shipping, credit card fees.
This monthly overhead takes a big bite out of our cash. Over time, these costs slowly creep up – and they certainly add up.
At least once a year, sit down and go over all these costs. Then screw up your courage, contact your vendors, and start negotiating.
Collect the most recent statements of all accounts you pay regularly, not just monthly, but quarterly, semiannually, and annually.
Remember to check your credit card statements for accounts that bill automatically, such as online services or Web hosting.
Gather prices, advertisements and promotions for all the services you use – both from your vendors and their competitors.
Check newspaper ads, online and direct mail offers. Ask other business owners what they’re paying. These give you ammunition when negotiating.
Set aside a few hours, preferably in the morning, to make phone calls. If you’re going to negotiate with your landlord, you may want to make an in-person appointment.
Now get ready to make calls. For each account, call your sales representative, agent, or the customer service number, and do the following:
Ask to lower your rate. Yes, this seems hard, but it’s surprisingly uncomplicated.
Just say, “Hi, I see I’m paying a rate of xxx. You’re offering a lower rate to new customers; I’d like that rate applied to me.”
Or, “I’m considering switching suppliers, (cancelling my service, credit card, whatever), unless you can offer me a substantially lower rate. What can we work out?”
Photo by eürodäna.