As we close another year and look forward to what 2010 has in
store, I’d like to share three year end tips to help start the New Year
Tip #1 – Assess every expense. Have you called all of
your vendors and asked for a discount, better terms, or better
pricing? Have you called the competition of your vendors to get new
quotes to compare to what you are paying now? Now is the time to
switch vendors and lower your monthly expenses. It does take time to
call everyone and make the changes, but your bottom line will
appreciate it in 2010.
Tip #2 – End of the year Blow Out Sale.
Put together a special promotion around “the end of the year “or
“beginning of the year.” Consumers anticipate getting great deals at
the end of the year and look for the opportunity to spend money when
they feel it’s worth it. If you provide enough value in your offer
people will buy. I even heard of a retail store that had a huge
inventory of a specific product that wasn’t selling. Although they
wanted to lower the price to clear it out for something new, they found
their pricing was already too low and any discount would result in a
loss or just break even. Instead, they decided to raise the price of
the product by 30% and provide a 25% discount. The product sold out in
just 5 days.
Tip #3 – Cash is king.
Keep as much cash on hand as possible. You never know when unplanned
and unavoidable expenses will come up, especially during the holiday
season. An increased need for inventory because sales are better than
expected, the need to reward staff for a job well done, or to purchase
a gift for your top clients are all situations where having cash on
hand is important. Although a solid credit line that you can access
any time is great, it is something you should keep more for emergencies
and not for everyday situations.