In recent weeks, I have posted about the possibility of recession – the key word being possible. However, there is something that is more than possible, but will happen before the end of the year – increased tariffs. While the latest round of tariffs on Chinese goods is set to go into place 12/15/2019, they are coming, and you may be considering your options on how to react to those tariffs.
The goal of every company is to remain competitive in your perspective field and one of the most valuable means of competition is in price of your product and/or service. Depending on how effected you have been or will be by the tariffs, you may be in a position to have to increase your price. So, let me suggest an idea which might reduce or even eliminate the need to increase the prices of your products: cost reduction. I am not saying you need to find an inferior paper to print on or decrease your labor.
Instead, consider all the vendors your business interacts. Each is an opportunity for cost reduction. Real estate, office supplies, IT providers, freight – all of it can be reviewed and some, if not most, will reveal savings. Savings which you can use to reduce the cost of manufacturing your product or service, thus remaining cutting edge with your price.
The key part of reducing the cost with your vendors is expertise. Knowledge in all your vendor sectors can be very helpful in deciding which direction to head for the largest savings. December isn’t that far away and to ensure limited effects on your price, being able to move quickly can prove to be very valuable. This is why using a cost-reduction vendor can be a wise decision. They can expedite the process because their whole business is about finding savings – meaning they can review the products and services you purchase and find the ones with the highest potential.
Silverback is one such company that can help you find savings. We have a wide variety of subject matter experts that allow us a wide range of knowledge to isolate where to focus and find those savings for you. In addition, we follow up for 3 years to ensure you are continuing to maintain the savings. Meaning, you can adjust your product price with more confidence.