Share
Your neighboring companies have a lot to offer if you approach them in the right manner. You both buy many of the same things, hire employees, pay taxes and municipal fees and generally have the same types of problems that face all businesses. Get to know the people across the street and consider the following possibilities with a cost-cutting attitude and approach.
Benefits of knowing your nearby neighboring companies:
- Utilities: Compare gas, electricity and water and sewer bills and rate plans (i.e. cost per kilowatt, cost per 1000 cubic feet natural gas).
- Telephone and internet services: Your neighbors have land lines, cellular phones, fax lines and internet services so compare plans. Pick the best or even better, both of you negotiate with the sales representative and get a shared volume discount. The key to all of this is to get your two purchasing department agents together on a regular basis to share savings ideas. Think volume.
- Freight companies: You probably hire freight companies so here is the opportunity for both purchasing departments to compare best carrier lists. Your combined purchasing power may help you with current haulers if you meet together and ask for a discount.
- Various Supplies: You both most likely buy shipping and office supplies. Negotiate better volume discounts when the supplier truck comes and delivers to both of you on the same trip. Insist on receiving the higher volume discount.
- Outside Services: You have gas cards and have your company vehicles serviced by outside mechanics. Talk to them to get a better price when you bring in the fleet next door. You have lawn care, tree services, parking lot paving, office cleaning, maintenance companies for repairing your facilities and a number of other services.
- Financing and banking sources: You both own bank accounts, pay fees and receive interest on deposits. You pay for lockboxes, own lines of credit and borrow money to buy capital equipment and grow your business. These rates and fees can be compared and loan officer contact information can be given to the other. You can compare capital lease rates, rental fees and credit card costs if applicable.
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