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During a slowdown, store owners need to be creative and look for ways to cut running costs. This does not mean that they need to cut on the quality of service. What it does mean is that store owners will need to innovate to provide the same or even better service by going about their business smarter.
If fewer people frequent your store because of a slowdown, then you need to make every cent count. Here’s how to reduce running costs.
Using digital displays wisely
Printing media is not cheap, which is why going digital will save you plenty of money in the long run. Although there might be an initial cost to digital signage, the return on investment far outweighs the cost.
Mandoe Media will help you create eye-catching media that will not only drive sales but also reduce your advertising costs. The media you create can be displayed on multiple screens and scheduled to display at certain times.
There is no need to pay printing companies loads of cash anymore. Having someone design your advertising is also a thing of the past as Mandoe’s software generates hundreds of templates that you can use instantly. All that the software requires is the info you want to be displayed and it will do the rest for you.
Reduce open times
When your store has an online platform for sales and marketing, you can adjust your opening hours. It might sound counter-productive to open your store for shorter periods, but not if you have an online shopping or pickup option. When your store enters the digital realm, there are several routes that you can follow.
A popular route is a pickup or drive-thru system where customers order and pay online and pick up their products from the store. Not everyone wants to wait for something to be delivered, but they are more than willing to take a short drive to your store to pick up their products without wasting too much time.
Decrease your inventory
A large inventory is not always the best inventory. To reduce costs on the products you have, it is necessary to research and stock up on the most popular products.
During a slowdown, people tend to buy what they need and not so much what they want. Cater for these customers and ensure that you always have the popular products at hand.
Reevaluate your current service providers
Several expenses cannot be cut from the budget, but they can be reduced. Credit card services are essential, but where you do your banking is up to choice. Shop around for whoever can offer you the best rates and switch.
If you do not want to switch service providers, then negotiate new terms with your current supplier. Rent is a massive expense, but a slowdown is not affecting you alone. Get other tenants to stand with you and negotiate new renting terms.
If they cannot drop their prices, try and opt for rental relief programs. Lastly, talk to your accountant and find out how you can decrease your tax bill.
Retain the customers you have
During a slowdown, everyone struggles and even your most loyal customers will seek other shops that can provide better prices. To keep the customers you have, invest in loyalty programs and reward the stalwarts who always support your shop. It is cheaper to retain customers than to lure new ones to your shop.
When you reward loyalty, you will also enable your current client base to spread the word and share the love, especially when they are rewarded for bringing in new clients.