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Wednesday
November 4, 2009 Tip of the Day: Cut 10% From Expenses Without NoticingFiled under: Tip of the Day From installing energy-efficient light bulbs to renegotiating insurance policies, there are an endless number of steps distributors can take to cut costs on a daily basis. David Gray, owner of David Gray Enterprises (asi/213025), makes vendor relations a cost-saving area. “A lot of vendors, if you pay them within 10 or 15 days, will give you a 4% or 5% discount,” Gray says. “I have to pay the bill, so why not pay it early and get a discount?” Gray negotiates similar deals with artists and other vendors he works with, offering to pay them up front or early in exchange for a reduction in fees. Particularly in this economy, he says, companies are more than willing to negotiate discounts for early payment. A little extra negotiation on the front end with vendors can yield an overall 10% savings from all of your operation’s costs. Now is the time to build that kind of negotiation into your procurement process. – Betsy Cummings From the 2009 Counselor State of the Industry |
