Time to Renegotiate Everything

From Bob Brudzinski, Change Up Management, Inc.:

Bob Brudzinski, Change Up Management, Inc. Small business consultant Bill Bartmann stated recently in the Wall Street Journal, "Most of us grew up knowing that once you agree to something, you don't back out of it."  He continued, "That rule doesn't apply anymore."

If you're a small business owner, your suppliers were rarely concerned about raising their prices to you, often unannounced, to improve their financial performance. Now it's your turn. They really need to keep your business. So, for once, you have the leverage.
 
Work with your suppliers and look for ways to reduce product or service costs, improve payment terms, reduce order quantities and minimums, and reduce shipping costs.

Now is the time to consider consolidating suppliers. Then, you can offer one supplier additional volume and move your company higher on their customer priority list. In exchange, you can get price or terms concessions.

Look at your facility rent. In these economic times, newer, larger and nicer facilities are coming on the market, because they lost their clients. These facilities may now come on the market with more competitive rental rates that may be as good as or better than what you’re currently paying.  Likewise, you may be able to renegotiate your rent with your current landlord to prevent you from moving elsewhere.

Finally, get new pricing/quotes on your health insurance, telephone service, Internet hosting, marketing programs, office supplies, and everything else you buy in some meaningful quantity. An ad agency client, who already runs a tight ship, was able to find $18,000 savings just by renegotiating. 

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Change Up Management, Inc., located in Roanoke, Virginia, helps business owners, one-on-one, by providing practical advice and support that leads to lasting change, improvement, and long-term success.  President and Owner, Bob Brudzinski, has worked with hundreds of business owners, customers, lenders, suppliers, and employees through the economy’s periodic ups and downs.  He is an accredited Institute for Independent Business, IIB, associate. 

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