While eliminating errors and overcharges is an obvious and common sense approach to business cost reduction, it is also tedious and time-consuming labor. For most business owners with a crushing workload, scrutinizing every line item on several months’ worth of vendor bills is about as appealing as undergoing a root canal minus the Novocain. However, that’s exactly what I like to do (the analysis, not the root canal).
Below I’ve shared two simple actions you can take to painlessly root out overcharges and overpayments.
Identify and correct billing errors and overcharges
Billing errors and overcharges can appear in a variety of ways and can happen in a number of different circumstances. When they are identified, calculate the total credit due then contact the supplier to request a credit.
Identify and eliminate unnecessary products/services
Eliminate waste by identifying what you actually use. Determine whether you are paying for products/services that you no longer need, or that you aren’t using as much or as often as you thought you would. Consider why you aren’t using the product/service and then assess the likelihood that you will (or will not) use it in the immediate future. If you have to think about it longer than a second or two, you don’t need it. Eliminate that expense!
Vigilance is the key to preventing billing errors, overcharges and ongoing payment for unnecessary products and services. Periodically check the prices and terms of your invoices and contracts. Also, know your vendor contract expiration and/or auto-renewal dates and the terms and pricing that apply upon renewal or contract expiration.
Even these simple and straightforward steps require some time away from your already busy schedule, but I promise, the savings are worth it. If you still find your schedule too hectic, think about hiring a cost reduction consultant.
Give Simple a call and see how we measure up. We’d love to have a conversation about how we can put more cash in your stash. After all, you never know when that trip to the dentist is going to require more than just a routine cleaning.