Note: Running Fridays in FromGregsHead.com, is a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on KPRC 950AM. Audio files can be found on the PKF Texas – Entrepreneur’s Playbook® page of the PKF Texas website.
As we enter the fourth quarter of the year, many businesses have begun their budget process for next year. Take this opportunity to look at where your money is going. Many companies tightened their belts in 2009 and aren’t sure if and where to cut for 2010.
Now is the perfect time to start negotiating with your vendors. Often businesses sign contracts and don’t look at them for years. Or, they ignore incremental increases and don’t check for competitive pricing.
Can you negotiate a lower advertising rate? What insurance plans are available for your size company? Is there a way to decrease your printing costs by bidding out a job? Can your vendor offer a bundled deal if you use multiple products? Ask about new products that might be a better fit for your company.
By negotiating with your vendors now, hopefully you can free up some cash flow for next year.