Summer is inching its way towards us, but work goes on year-round and it’s time to take another peek at our monthly topics. We’re up to June!
In my book, Tame Those Pesky Details: 12 months of business tips and tasks (Aunti Cindi Presents), June is devoted to vendors, contractors and consultants. Now is the time to double check all your current agreements to see that you’re getting the best service for the best price while considering which vendors you no longer need or others which you do.
This can be a tough month for some people while others enjoy the challenge. Some people like to negotiate. Others will pay full price no matter what. Some business owners will nickel and dime their suppliers to the tenth of a penny but balk at their own customers requesting a discount for early or all cash payment. Other business owners are afraid to call for service or necessary meetings because they know a sales pitch will accompany them, forgetting that their own businesses depend upon the same such sales calls. I think most of us fall somewhere in between.
Here are a few steps to getting through the month and hopefully saving some money.
- Review all current vendor/consultant agreements. Are you paying for something you don’t use? Are you unhappy with a particular supplier? Are you receiving the best price for what they have to offer? Make a list of questions for when you contact the vendor.
- Pull out your June folder and review others who have contacted you and piqued your interest. Is there someone in the folder you’d like to interview and request a quote?
- Pick up the phone and call all your current vendors. Tell them you’re doing your annual review and you’d just like a few minutes to chat. Then, ask all the questions you have and remember one of them should be, do you have any new services or packages that might better suit my needs?
- Gather the results of your research and decide who you plan to use for the next year and at what price.
- Work your new figures into your budget for the next 12 months, or the terms of the contract.
It doesn’t take much effort to save money. In the last few weeks, I received a sizeable credit from one vendor just for doing an annual review with them. I didn’t change my contract because they no longer offer the package I have and any changes would incur higher fees. However, just by calling them and doing a review, they give me an invoice credit for being a loyal customer.
Another vendor has reworked their offerings and, with a few minor tweaks on my part, I saved $50/month on my agreement. Might not seem like much, but it only took a few minutes and it resulted in saving $600/year. If I can do that with five vendors, that’s $3,000/year savings just for a few simple phone calls. It all adds up.
I’ve also replaced one vendor with another, finding one that does an excellent job for my needs at a lower price.
One of my pet peeves is not offering a discount or perk to a long-term, loyal customer. Many businesses only offer them to first time customers, hoping to build their clientele. While I think that’s a good strategy for them, there should also be some reward for those who stick around a long time, something like an Anniversary Discount. I talk about my own experiences in my book, How to Screw Up a Good Idea: Insights for Entrepreneurs (Aunti Cindi Presents). I’ve been on both sides of the equation and hopefully, I’ve learned.
It’s nearly impossible to be successful in business by yourself. Whether you have your own staff or a team of vendors, contractors and consultants, it’s important to have the right people at the right price providing exactly what you need.
Your Aunti Cindi
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