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How to Lower Business Costs During Recession
Inflation—the rise in consumer prices and the accompanying reduction in the purchasing power of currency—is an economic trend that affects everyone, but it tends to be particularly troublesome for business owners. As prices rise across the board, it becomes increasingly difficult to manage overhead costs.
Shipping, advertising, in-house electronics, software as a service (SaaS) applications—these are just a few of the business-related expenses that generally rise with inflation. And it’s a problem that more and more businesses are dealing with in 2023 as the economy threatens to dip into recession territory.
According to the U.S. Bureau of Labor Statistics, the 12-month period ending June 2022 saw a 9.1% rise in consumer prices—the largest such increase reported since 1981. It’s clear that the business community is already feeling the effects of a weakening economy. 89% of small business owners have raised their prices since the start of the COVID-19 pandemic.1
Now let’s look at the ways that businesses cut overhead costs to compete in a high-inflation economy—and how Global Trash Solutions can help them reduce an often-overlooked business expense.
Common Strategies to Reduce Overhead Costs
Business owners cope with inflation in a variety of ways, depending on the size of their company and the types of goods and services it sells. No matter what sort of business you have, though, a looming recession provides a sound reason to take a close look at excessive and unnecessary expenditures with an eye to making some cuts. For instance, an SaaS subscription that is rarely if ever used is a good candidate for elimination.
Other strategies for lowering business overhead costs include:
- Laying off less productive employees
- Reducing on-hand inventory
- Finding suppliers that offer better deals
- Hiking prices of goods and/or services
- Relocating to a smaller or less expensive location
- Decreasing marketing expenses
- Offering in-store pickup (to reduce shipping costs)
- Dropping less profitable goods or services
These are not the only methods that can be utilized to reduce business expenses. In fact, there is one area of business operations—frequently ignored during cost-cutting analysis—that can yield substantial savings in overhead expenses: waste management. By applying certain cost-reduction strategies to these processes, businesses may be able to compensate in full or in large part for the harm caused by inflation.
The process begins with a thorough waste management audit. That’s one of the services we specialize in at Global Trash Solutions.
How Global Trash Solutions Can Help Your Business
Waste management is a problem that virtually every type of business must contend with. For most organizations, normal operations result in the ongoing accumulation of a large amount of materials that end up being reused, recycled, or simply deposited in the trash. All this costs money.
What many business owners do not realize is that these processes can be streamlined in a way that sharply reduces waste costs. Global Trash Solutions offers several services that can help with this:
Waste brokering services – Our waste broker will negotiate with third-party businesses to secure the lowest rates possible for the hauling and recycling of your trash. This is based on a comprehensive analysis of your waste-management needs and procedures.
Waste consultant services – We’ll gather data about your waste disposal and recycling processes and make cost-saving recommendations that you can implement.
In addition, we have an inventory of cost-effective industrial balers and trash compactors that are designed for efficient processing of waste materials. These machines are available for purchase or lease.
Global Trash Solutions serves businesses of all kinds, large and small. Our waste reduction solutions can cut your trash-related costs by 30% to 40% in the first month. Call for a free quote at 866-760-8194.