The consumer has changed from the carefree buyer of yesterday, into a more selective and price-conscious creature. For this reason, those in the retail and wholesale business should be looking for ways to cut costs, as a means to driving profits while maintaining a level of standards for their customers. There are ways to save money that don’t require excessive pain, and some of those methods are deceptively obvious.

For some, the first thing that springs to mind when the phrase “cost-cutting” is uttered, is the fear of downsizing or layoffs. This is not only unnecessary, but often counter-productive. It creates a short term false sense of security, as numbers are driven upward simply by overloading resources that are already stretched thin. In the long term, there are no real winners, including the customers who suffer poor service and reduced options. So what then, can be done about cost-cutting, without negatively impacting business?

Here is the TopTenWholesale.com list of Top Ten Action Items that will Save Money:

The Search for Space, and Beyond

Perhaps the biggest and ugliest drain on the average enterprise, rent is going to cost dearly – whether a company in the trendiest part of town, or way out in the suburbs. Finding a better deal is critical, if too much is being paid. It could be easier to renegotiate a better rate if the building is half-empty, by simply paying attention to how the landlord is doing. Smaller businesses can leave the office behind altogether, and go for a more SOHO (Small Office / Home Office) approach. Incidentally, meals at home will save a substantial amount of money, too.

Control the Cash

Another enormous potential portal for money to be sucked down into the nether regions, managing funds borders on being an art, more than being a science. The idea is to get paid, as soon as possible. While this sounds rather elementary, it’s no secret that projects get dragged out and even intertwined, causing the billing game to become a lot more like organizing a confounding mess. Experimenting with pre-payment policies for services, and possibly even COD terms could shore up debts. For a lifeline, revisiting the line of credit may be important, because many banks will be prone to forgetting about a company entirely, that hasn’t made use of available credit for some time.

The Tax Man Cometh

While on the topic of cash management, particularly close attention should be paid to the tax situation. What if a company is paying too much? The IRS is not in a hurry to notify anyone of that problem these days. However, there is a danger of getting penalized for something that wasn’t paid. Hiring a professional may seem like an expense, but it could be a decision that saves not only money, but on stress… which is hard to put a price on.

The Price is Right, Unless It’s Wrong

Paying closer attention to what the competition is charging for similar goods or services is essential. It’s easy to overbid, and it’s even easier to underbid, when the threat of financial hardship looms overhead. Reviewing appraisal processes will also help reveal if it’s really worth going after high-fee contracts, when they eat up every ounce of available resources.

Vertical Membership has Its Privileges

What happens with money that is thrown away on advertising or marketing that isn’t directing buyers to effectively? Spending on a PPC (Pay-Per-Click) campaign that relies on being found through a one size fits all search engine might seem like the way to go, but there are numerous vertical sites that offer more focused and valuable listings for your company.

Personnel

It could be time to scale back on those six-figure salaries, and a good time for letting key players exercise their own wealth management strategies. They probably already have, since they represent the savvy decision-makers and “top influencers” in the company, and maybe even wondered what took so long to trim the fat. While it won’t make the boss popular at the time, owners can consider broadening the responsibilities of their staff, hiring a bookkeeping company to manage payroll, and trying temp agencies for certain roles and functions that don’t require extensive training in the company’s specific operations.

Assurance and Insurance

Watching out for possible claims can be a matter of prevention, as repetitive tasks often lead to work-related injuries. Vehicles that have low value are not going to require premium coverage, and even the laws that periodically change in a company’s area of jurisdiction can allow some fine-tuning of larger insurance expenses.

Time to Freshen Up

Beginning the search for new products that can improve margins might help to make up for the ones that don’t contribute as much to the bottom line. Apparel and eyewear are not as susceptible to the effects of time, as products like personal care and health-related goods are. A variety of recent reports indicate that companies are rolling out new concepts, products, and even variations on the old offerings, in an effort to freshen up their appearance and get more attention from buyers.

Tools of the Trade

For anyone in the wholesale business, there’s no excuse for buying office supplies from overpriced specialty retailers. Shopping around, looking for the best prices, and seizing the deals when they come around, is the winning move. Keeping well-maintained supply inventories locked up, and rationed out won’t make employees happy, but it’s going to force conservation upon everyone, which will save money.

Fixed-cost Assets that Need Fixing?

Selling off extra items in the office that are doing nothing, such as worn-out office furniture and outdated equipment, could produce quick cash. Getting rid of nearly-dead copiers and printers, and investing in one good one that networks to a hub, will reduce costs. Cleaning up aging maintenance contracts, and seeing what is really in need of 24-hour emergency repair, may lead to some discoveries. If the phone system is costing you an arm and a leg, it could pay to consider streamlining or scrapping it altogether. For many businesses, the idea of having an integrated phone system for the company just sounds like the thing to do… but rarely gets used to its full potential. Does anyone really need a full-blown paging, messaging, indexing, and intercom system in a company with less than 10 employees under one roof?

Let’s face it; everyone tends to get overconfident during the good times, and that’s all well and good. However, the real trick to being a survivor in the retail and wholesale business is the ability to keep head above water when things lean out a little. With the above tips, and a bit of calculated planning, hard times can be turned into merely slow times until they pick up again.