How to cut costs and improve your profit margin

Topic: Guides, Industry News

Cut costsAs always, the best place to look for tips on how to improve your business, is to look to industry leaders and innovators. This way you can identify patterns that cause success.Right now, there’s a big focus on cutting costs to businesses. It’s really simple; if revenues aren’t dramatically growing, then costs need to be cut. This way, you improve efficiency, and optimise your services.Recent reports have showcased the trend, which has even seen all the big four banks cutting back on costs. QBE Insurance has an “Operational Transformation Program” to deliver $178 million of savings, while Suncorp’s “Optimisation” program will strip back $170 million worth of savings by 2017-18.Qantas expects $2 billion in overall savings by 2016-17 from its business transformation program. While Coca-Cola Amatil wants to cut $100 million over three years.The trend is obvious; find a cheaper way to run your business. This could require getting creative. Really, all you need to do is find a cheaper method of doing what you already do. This doesn’t mean a less effective method. You’ll find sometimes the older and more expensive ways are not as effective as newer and cheaper ones.That’s where we come in. Our method for cost-cutting is simple, implement better and cheaper technology. If you’re in an industry like healthcare or retail, and you find yourself calling around staff to fill your roster, you’re wasting this precious time of, often, expensive and well-trained staff. Send an SMS, it’ll be much cheaper, quicker and you’ll have a higher rate of success.If you’re involved in finance, and you’re emailing people to inform them of debt repayments due, you’re wasting your time. An SMS is much more likely to be seen, with an average open rate of 98%, compared to 22% for emails. More people reading the message, equates to more people arranging payment.If you’d like to talk more about how to cut-costs like the leading companies, give us a call today on 1300 764 946!

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Prachi Bametha

Marketing Coordinator, Esendex Australia