Skip to main content

How to cut costs without affecting the quality of your product or service

How to cut costs without affecting the quality of your product or service
Click to enlarge
How to cut costs without affecting the quality of your product or service
Siobhan Stirling - Sharp Minds Communications for Capital Space by Siobhan Stirling - Sharp Minds Communications for Capital Space
Owner/Director - Sharp Minds Communications Ltd

Finding ways to reduce business expenses can be a straight-forward process but finding ways to reduce business expenses, without sacrificing the quality of products or services, can be more challenging. Although difficult, there are some ways in which you can cut costs without losing product or service value. Here, we share some tips.

Look at your utility costs

Looking at the prices of energy within your business is a fantastic way to see where you can cut costs without your quality suffering. Accessing cheaper sources of energy could be possible by switching from a gas provider to having solar panels installed. A smaller investment may be to ensure all lighting within your business space is energy efficient . These changes may seem like you are spending more money initially but, in the long term, this is a very good solution in cutting costs and being kinder to the environment.

Buy in bulk wherever you can

Some businesses buy in bulk to reduce their average spend. This is a good way to reduce business costs without sacrificing quality. Many suppliers offer higher discounts when you buy in bulk, meaning if you were to buy your necessities every six months instead of every month your business expenses could be reduced. It is important to consider storage space and manage the responsibility for any surplus deliveries amongst the team.

Switch suppliers

In some cases, this would not be feasible, changing vendors may deter customers depending on the type of product or service you provide, but if your business uses services or products that have nothing to do with what you sell/provide, you can afford to look at changing to a cheaper supplier. For example, you may currently be paying far too much on office supplies when you could be using cheaper resources that don’t directly affect your product or service.

Eliminate unprofitable clients

Cutting out unprofitable customers isn't something that works for everyone. If you are a shop or restaurant owner, you can't just send the smaller spenders away. However, for a lot of businesses, you can cut expenses by no longer working with disorganised clients who take up lots of company time or pay late. Focusing on the clients who deliver greater profitability will not only decrease expenses, it will also increase your revenue.

Reduce uncollected revenues

Lending money is expensive and having clients who pay you later than you expect does cut into your bottom line, which can be harmful for an SME . For those who are not paying on time, or are past a payment deadline, they could be charged interest or late fees to combat this. This is one way that you can offset your losses and promote a more efficient payment system for both your customer’s and your business’ benefit.

At Capital Space , we strive to help all of our customers weather economic downturns. Controlling business expenses can be difficult, but by taking control and reassessing where it is possible to become more efficient and reduce unnecessary outgoings, you can help bring your business through challenging times.