5 Ways Retailers Can Keep Costs Down

business owner

Most business owners want to keep their expenses under control. For retail businesses, this issue is especially pressing. Retailers of all sizes struggle with creeping costs, something we covered in What to Expect When Opening a Retail Store. But if you’re an established retailer focused on reducing costs, you might need a little extra guidance.

Never fear! We’re here to give you a few tips that could make a big difference when it comes to reducing your retail costs.

1. Review All Expenses

Although this may sound obvious, it’s actually quite easy to overlook your overall expenses when you’re busy running a retail business. Online tools with a monthly subscription are the perfect example. While these tools can be very helpful, you may be paying for something you don’t regularly use. Additionally, switching from monthly to annual payments typically means a discounted rate. By taking some time to see exactly what you’re paying for across your entire business and then identifying items that can be eliminated or optimized, you will likely be able to take a significant bite out of your expenses.

2. Emphasize Customer Retention

New customers are important for retail business growth. But acquiring new customers comes with a price that’s often quite steep. This is why it’s so important to focus on customer retention. If you haven’t already, be sure to read our post on 3 Ways to Boost Customer Loyalty. Getting more business out of existing customers can make it possible to reduce advertising and marketing expenses, while still allowing your bottom line to grow.

3. Sell Online

Space is one of the biggest expenses associated with retail. If you’re paying for both storefront and inventory space, consider selling online. Making the move online means even when your retail store isn’t open, potential customers will still be able to find and buy what you sell. Plus, selling online means you move more product and put that space to good use.

4. Look at All Shipping Options

Once you get in a routine of shipping products to customers, it’s easy to stick with what you know – even if you’re paying more than necessary. That’s why you should look at rates from multiple shipping providers. Shipping companies often have promotions, bulk discounts, competitive pricing and more, with prices that change often. Do your research and you could save big. Additionally, see if you can reduce the size of boxes you ship out. Reducing box height by just six inches could save up to $6 in shipping per package.

5. Evaluate Multiple Credit Card Processors

Whether it’s at your retail store or online, your business is charged fees every time a customer pays with a credit card. That’s why paying even slightly more than you should for every transaction can quickly add up. As you’re going through the different steps to help keep costs down, take a little time to look at our list of top credit card processors and see how those rates compare to the ones you’re currently paying.

Reducing costs is a big endeavor, but if you take it one step at a time, you could save big. Don’t wait! See which of these tips you can put in place and start enjoying the extra cash flow.

 

 

Posted on Thursday, September 28th, 2017