14 Ways to Save on Hidden Costs That Add Up
Shipping
There are so many different shipping options, between carriers and methods like air, ground, express, and overnight. And different carriers can charge wildly different rates for similar weights and deadlines. And with many businesses offering free shipping to customers that demand it, it’s extremely important to make sure your business isn’t overeating shipping costs.
Our tips?
#1: Reassess your shipping options yearly. Get prices from different carriers to see if there’s an opportunity to switch to and save.
#2: Purchase shipping materials in bulk.
#3: Try reusable shipping materials. It’s good for your wallet and the planet.
Taxes
Taxes can be a big surprise for a business’s first year. Or if you’ve experienced big changes or growth. It’s imperative to get a good bookkeeper or accountant on your side to help you track your tax liability and find ways to lessen the load.
Our tips?
#4: Track tax-deductible expenses that often go under the radar: educational resources, magazine subscriptions, and petty cash purchases.
#5 Talk to your accountant about any tax deductions for your industry you may be missing out on.
Small Expenses
It’s all the little charges that can really add up and put a dent in your budget. Have your bookkeeper monitor your monthly transactions and pay attention to even the small dollar amounts that could be unnecessary.
Our tips?
#6 Pause or cancel subscriptions that aren’t being fully utilized.
#7 Make sure employee-related purchases like office supplies, break room coffee, and snacks are not going to waste.
Insurance
Insurance can add up. Each policy could cost upwards of $1,000 a year. There are many different types of insurance you can purchase, and many factors that go into the cost. While your business grows, make sure its insurance setup still fits.
Our tips?
#8 Review your insurance setup and make sure you aren’t paying for policies you no longer need.
#9 Talk to your agent or broker about ways to prevent loss. This may allow you to reduce your premium.
Payment Processing
If you’re selling online, you may be paying all sorts of transaction fees based on your ecommerce platform. Third-party marketplaces like Etsy can charge fees per listing, a percentage per transaction, and can charge fees on top of shipping and gift wrap addons. Depending on your ecommerce platform, you may have options for different payment gateways with different pricing.
Our tips?
#10 Research payment gateways with lower fees to see if it’s worth a switch.
#11 Consider switching to a new ecommerce platform or third-party market for your online sales. Take into account transaction fees as well as monthly charges and upfront costs.
Customer Service
Customer service is an area where you may have to spend money to save money. In this case, consider how much money and time is going into dealing with customer complaints, returns, and confusion. Making changes to improve customer experience can save time and money down the line in preventing customer service issues.
Our tips?
#12 Train your customer service department. The more efficiently and effectively your staff can deal with customer issues means time (and money) saved.
#13 Use customer feedback tools like surveys to analyze how easily your customers were able to make their purchase, and get suggestions on ways to improve.
#14 Examine your shopping and checkout experience from a customer’s viewpoint. Is there a way you can clarify and/or simplify the process to avoid fielding calls from confused or frustrated customers?
Andrea Johnson
Your small business advocate for over 10 years.
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