Today’s small business owners have a lot of expenses to contend with. Between rent, paychecks for employees, and buying inventory, a small business owner has a ton of responsibilities on their hands.
One important thing that every successful entrepreneur knows is that saving money is always good for the bottom line.
Here are some easy ways that you can save money as a small retailer:
1. Shop Around Before Buying Your Products
Before dropping thousands of pounds on new product inventory, it pays off to do some research and compare prices between suppliers and offer quotes from different distributors. Once you find the supplier whose products best fit your needs while also matching or beating competitors’ prices, you’ll know where to buy new products whenever they’re needed without breaking the bank.
2. Insurance Is An Investment, Not A Luxury
Many small retailers think that they can’t afford to pay for insurance. However, the money saved from having proper coverage will more than make up for the cost over time because you won’t have to deal with paying for expensive medical bills or replacing your entire storefront if it gets damaged after a natural disaster. Shop insurance quotes and ask different providers what kind of discounts they’re willing to match to get affordable rates on liability, property, vehicle, workers’ compensation, and crime.
3. Plan Your Shop Layout Strategically
One of the best ways to increase revenue is to make sure customers are flowing through your store as easily as possible. If you have patrons constantly bumping into each other or getting turned around in a maze-like environment, they won’t stay long enough to make any purchases. Ensure that shelves are neatly arranged with products facing outward for easy browsing, and clearly label items wherever necessary.
4. Keep Track of Inventory Correctly
Managing inventory is often the largest headache for small business owners, but careful planning can minimise it. As soon as one product is sold out, immediately place an order to restock it so customers will always have something new to look at while they wait for their desired products. Additionally, don’t be afraid to reduce the number of products you offer for sale if they’re not selling as well as other items. More than likely, those same products will eventually sell better as soon as newer, hotter trends take over the market and your old stock becomes retroactively popular.
5. Be Willing to Negotiate with Suppliers
For small retailers, it’s easy to get nervous about negotiating price quotes from suppliers. However, it pays off in the long run because you can find out exactly what type of discounts you could be receiving for big orders if you know how to play your cards correctly. To receive maximum savings, consider asking your supplier if they’re willing to lower their prices in exchange for a longer contract or paying cash quickly upon delivery. Additionally, ask them if there are products that they don’t normally offer that would fit perfectly into your plan and see what kind of discount you can score on those items too.
Image Credits: Artificial Photography