I have been talking about costing cutting a lot, but may be its time to talk about how to go about cutting cost in this economy. There are several ways to go about cutting costs, and what a person or company can do is pick up the method(s) that is most find most comfortable to achieve their goal of cost cutting. Cutting costs is the only way forward for a person or company to survive in these difficult financial times, and there are a number of way you can go about cost cutting as illustrated by the following article by Liliane Waldner.
Many people and families are forced to cut their personal expenses for their daily consumption. They have already lost their job or they worried about their job. Many workers sit at home because the employer has sent them on an extended holiday, and their salary has been reduced. Cutting expenses is inevitable to get rid of debts, and to regain financial freedom. It never has been such a good time to catch good bargains as in these days. Here are some practical tips to cut the cost of living, or to cut the costs as a small business owner:
- It is recommendable to think and plan about the needs, before the shopping tour starts. Are all the goods really necessary that we shop in our daily life? What does a person need and what can be left out or postponed to better days?
- A shopping list belongs to the shopping trip downtown. A shopping list preserves from buying unnecessary goods spontaneously.
- There is stiff competition among the retailers. They offer every week high discounts on certain goods. Detergents or other storable goods should be purchased systematically during such discount campaigns. The daily menu at home can be accommodated to running discount campaigns for food. The supermarkets usually offer high discounts on fruit, vegetable or meat after they have achieved a favourable bargain for fresh deliveries in bulk. They need to sell them off as soon as possible, and reduce the prices.
- Why buy fashion goods, jewellery, watches, home electronics, software, DVDs, kitchen equipment, furniture etc. of famous brands to the full prices? Goods from branded names do not have to be expensive: e.g. Gucci, Sony, Apple, D&G, Panasonic, Nike, Prada, Lacoste, HP. There are many opportunities of buying them at half of the official prices, or even lower from a liquidation shop. These kinds of shops spread out in all greater towns. They sell brand new, untouched goods that originate from liquidation of shops, inventories or factories
- There are manufacture shops or factory outlets. They offer brand new goods on high quality. It is cheaper to buy goods there than at the shopping malls and, department stores.
- Why buying goods during the main season, and not wait for the time when the shops reduce the prices to discount rates of 30, 40, 50 or even 70 percent? Many consumers haste through the crowded shopping malls during the days before Christmas. All these goods are significantly cheaper after the Christmas Holiday. It is clever to plan the Christmas presents throughout the year and to check out the shops for a good bargain. Also toys for the kids can be bought at liquidation stores or factory outlets.
- Dropshipping is a business model that creates a win-win situation for both: the merchant and the consumer. A small business owner or merchant sells a consumer good of a famous brand to the customer at a high discount. The customer only pays the wholesale instead of the higher retail price. The customer has to advance the money to the merchant. The merchant uses the advanced payment in order to purchase the good directly from the producer or another good source at a much lower price. The merchant does not need to run an expensive inventory, and he benefits nevertheless from a satisfactory profit margin. By the way, there are internet communities and directories that help to find out good bargains within a reasonable time.