What can you learn from “shrinking food?”
You may have seen this video below from Rick Lax. If not, it’s worth a quick look.
So, how does it apply to your business?
- Ask: Do we even need to do this at all? You’ve made some strategic decisions that no longer apply. The strategies behind those decisions no longer apply. Too much time has passed, the market has changed, your customer has changed. There are opportunities to stop doing some things and become more profitable.
- When is the last time you renegotiated your contracts? You could be saving thousands just by going back and renegotiating contracts. No matter how large or small – negotiate and renegotiate.
- Always get three quotes. When getting things quoted, always get three quotes from three different vendors. It’s easier than you think. Just copy and paste your quote in three different emails and send it off. The three quotes allows you to negotiate the best price.
- Ask: Is there a cheaper way to do this? If it doesn’t decrease or increase sales, then why not do it cheaper! Yeah, sure quality matters but not many times it matters more to you as the business owner than it does your customer.
- Do you need to change your packaging? Is there a cheaper way to repackage what you’re offering?
- Are there employees that are no longer needed? That’s the most difficult question of them all. But as painful as it may be, it’s a question that needs to be asked.
- Do you need to raise your prices? The answer is most likely yes. If you were to raise your prices by 10% what would that do to the bottom of your business. What would you be able to do with 10%?
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