I feel like I've been holding out forever on this great post. Cutting costs is one of the easiest ways to ensure your business runs smoothly. It'll squeeze you to work within your means, teach you to respect the profit you make and the value of the dollar, and be able to help ease those hard times of e-commerce.
Let's dive in:
* Find cheaper rates.
*Combine shipping if possible
If you have a high volume store with an abundance of repeat customers, offer a small refund for combining their orders.
*Raise your shipping prices.
It Took The Baby Bird Boutique eight USPS increases before the math felt way off. Their flat rate price is now $5 and not a single person blinks! They offer Free shipping on $50 +, and even saw an increase in cart average after the shipping increase.
Instead of getting your monthly supplies, try increasing the volume to save on costs. Most companies give deep discounts for buying in bulk. Even if you have to save a bit, getting an entire quarter's worth of supplies at a time can save big!
Call up every vendor you know by name. Simply ask! Yes- it's really that easy. They may say no. So you wasted a few minutes on the phone. We recently called Charter to talk about our contract ending. We asked if we could keep our same rate as before without being in a contract- THEY SAID YES! The bulk trick works here as well. Suppliers like Kavio have special sale days most may not know about. It never hurts to ask.
4.) PROCESSING FEES
Did you even know this is a thing? Big processors like Paypal & Stripe will negotiate your fees once you hit a certain stature of sales. And trust me, 2.9% adds up quick!
Got old software that just renewed for the year? Terminate it so you aren't out the money next year.
Using a paid app and now there's a free version on the market? Cancel that now!
Cleanse your e-mail list and save a few bucks (& increase that open rate)
Go to great lengths thinking about all of the technology in your life. Purge, Cleanse, Repeat! Say it with me, "FREE IS ME!"
Sell off old equipment or return rented equipment you're no longer using.
Have an old press or dryer laying around? Craigslist is your new best friend. De-clutter and make some money.
I know, you're thinking, " Doesn't hiring cost me more money?" Handing over tasks that take up too much of your time with little reward isn't getting you further. Grab the task you dread the most, or scoop up a few simple tasks that you can wipe off your plate, and find a contractor/freelancer to take them over.
Sorry. I had to.
In need of new equipment or furniture? Remember when i told you craigslist is your best friend!? Just do me a favor and have a buddy. You don't need to become 6 o'clock news to save a few bucks on an office chair.
There are a few ways you can cut cost on production. Source a cheaper way to produce your item, find a contractor who can produce your item more efficiently than before, or find better quantities/stock to maximize your savings.
10.) RAISE PRICES
This is a no-brainer. The more experienced you get, the more hype your brand gains, the more value it holds. I'm not telling you to hop on your site and double all of your prices. There are natural ways of working in increases: start of a new year, introducing new products and announcing a new site/structure are some great ways to slide increases in organically.
No matter which of these tips called your name, we hope that you take this list to heart and start finding ways to cut costs and maximize profit.
Were there any tips we missed? Let us know in the comments.