New Thinking

Replies to This Discussion

Permalink Reply by William Matthies on February 27, 2009 at 6:07pm

I suppose I can't ask for suggestions if I don't make some myself.

Like you, I went into the "bunker" as the economic news got progressively worse this fall but soon decided that was not the answer. Sure I need to watch what I spend but if all I do is concentrate on cost control leaving revenue growth to be whatever it will be, I'll die there.

I'm a consultant and charge a significant daily rate depending on the length and complexity of the assignment. Knowing my client's businesses are most all down 20% to 50%, which in turn meant they will be less likely to spend money with me, I decided to alter my business relationship with a few key customers.

I went to 10 of them acknowledging that 1) I know their business is off, 2) that they will look long and hard at what they spend including me, 3) that I am expensive and 4) whether or not they know it, important to their success. With that the case I offered to reduce my daily rate 25% for individual assignments totally 30 days or more over the next 12 calendar months, in exchange for a non-binding commitment from them to retain me for at least 30 days during the year.

Six of the 10 agreed and my billing is now projected to be up 4% over last year as a result. And yes I know this is non-binding however I didn't just pick any 10. These are all long-term relationships and I trust them to do what they say they will, as I will do. For a variety of reasons not all will but some may exceed the original commitment and even if that doesn't happen, I'm not going to just stay hunkered down in that bunker waiting for stimulus relief.

Think about it; some version of this may work for you.

Ok, now someone else; what have you got?

Permalink Reply by Dan Jensen on March 3, 2009 at 10:48pm

I'm going to have to go one step at a time here. There's so many recently...here goes one cost cut tool...

We have an very substantial copier, printer, fax, and scan Biz Hub that carries with it a very substantial monthly lease and maintenance fee. ( we should have been more wise when we originally acquired it )

Lease company has agreed to reduce the lease maintenance fee by 15%. Good start. (happened because we called and pressed for their agreement to lower the cost for now.)

Next, we are in a complex filled with businesses. We offered the use of the equipment for a nominal copy/print/fax/scan cost per page (much less than Kinko's, Office Depot, etc.) Not many takers, but a few, and our overall cost has gone down another 8-10% per month.

Doesn't seem like much, I know, but this is just ONE of the cost containment moves we've made recently.

More to come

Okay, your turn. come on ya'll. Spill em!

Permalink Reply by Lynn Clifton on March 4, 2009 at 7:51pm

"Six of the 10 agreed . . . "

Great return on customer investment! Congratulations!

Lynn

Permalink Reply by Gary Akin on March 7, 2009 at 5:10am

I really think N O W! is the perfect time to expand our MLM business. With so many more people unemployed or concerned about their potential work situation, let's seize the opportunity and offer them the opportunity to start to build extra income through our offering.

I think it really offers us the opportunity to coach people properly in getting into the MLM business and maybe be a bit more selective.

Gary

Permalink Reply by William Matthies on March 7, 2009 at 11:32am

Gary, I absolutely agree that timing is right. Those who accelerate ahead of the others will be those who plan to do so now rather than waiting for the economy to improve.

What are you plans? Can you be specific as to what you are doing to expand your business?

Bill

Permalink Reply by Lynn Clifton on March 9, 2009 at 8:54am

My degree is Business Marketing. I love to write, so I've combined the two. My focus has usually been web text and ad copy. Now I'm thinking of making some of my card lyrics available and also writing Cryptograms and personalized word games.