Top 5 Tips of the Cost Reduction Trade

Guest post from Richard Gardiner of Lean Cost Management – cost reduction tips.

Cutting £20 note
Scissors cutting money

1. If you are purchasing or renting a new property make sure you lock in a utility (gas and electric) contract A.S.A.P. From the minute a new owner gets the keys to a property, the utility company, who has control of the meter, will be charging their highest tariff. Most utility companies will back date the new, lower rate which you have signed up for up to 3 months.

 

2. With waste collections keep the number of contract collections to a minimum. If you get busy or require more as a one off just call your waste collection company and they arrange for an additional collection. This will save you paying for empty bin collections.

 

3. Keep track of contract end dates and termination periods –Just because the contract end date is July per se doesn’t mean that you have until July to move it or cancel it. Some suppliers require 6 months notice to move or cancel a service.

 

4. You don’t get anything for loyalty these days, move suppliers at every opportunity, new business rates are ALWAYS better than renewal rates.

 

5. The termination letter is your best friend, 9 times out of 10 suppliers will find movement on their prices once you have issued it.

 

Richard is Managing Director of Lean Cost Management who are specialists in indirect, non-payroll cost reduction www.leancosts.com 

 

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