Member Article

Money saving tips from Deal Jungle

Contracts, Costs and Charges

Contract review

Some contracts are profitable, and some are not, so be sure to regularly review your agreements so
you know which category they fall into.

Prioritise the high value unprofitable contracts or those large contracts where the profit margin is
lower than you expect. These contracts should be reviewed to see whether you can:

• Improve your performance further
• Help the other party improve its performance
• Renegotiate if its performance is impacting on your profitability

Also obtain a legal review of key contracts to establish:

• Whether you can terminate the contract early. If so, how much will it cost and what are the legal arguments you can use to reduce the costs and what legal arguments can you use to help in any re-negotiation.

Site such as DealJungle.com offer a variety of deals from lawyers, so be sure to be on the lookout for
discounts.

Let The People Who Know Them Best Examine Your Costs

The best scrutiny of costs is done by the employees who see first-hand any abuse or wastage of valuable resources – especially money.

Assistants, clerks and accounts payable can be resentful of obvious abuse of company funds by their managers when they are denied the little things that help do their jobs. This is why a company policy of allowing any employee to present a business case regarding any wastage of resources, including alternative solutions and the cost-saving resulting from the change, can be a great thing.

Maybe offer your staff an incentive bonus of 10-20% of the cost saving they have actually generated from their business case. Some cost savings could become long term solutions saving the company thousands whilst others might be small savings, which help make the company function more efficiently.

Speak To Your Bank

Have a look at what you are paying the bank for merchant fees on credit card receipts. You might think just two per cent is a great deal but when you approach your bank with an offer you claim to have received from another source they are more likely to match it. That two per cent could easily become one per cent and which a small figure in itself can mean big savings over time.

This was posted in Bdaily's Members' News section by Tom Michaels .