How to reduce cost in your retail business

If you own a retail business you must have come across times when you might have tried finding ways to save your budget or not cross your budget.

Here are some simple tips that can help you reduce cost in your retail business.

1. Reducing communication cost

Communication can cost in retail business and take up unnecessary amount of budget that a retail business should not be spending on.

You can use bulk sms and emails instead of huge number of phone calls reaching out to your customers which is just going to take up more from your budget. Avoid making unnecessary calls and using your office phone to contact anyone else other than your customers. Make sure that you have a bulk sms and email option in a software or a system that you are using for your business. This way you can indirectly save from the advertising part a little as you can send out ads in sms and emails to your customers.

2. Reduce packaging waste

To reduce the wastage of packaging one must know that it should be the right amount not to waste the product and to keep from product getting spoiled. Here are some steps how to do it:

• Do not over do it, analyse the sales patterns before hand
• Use inventory management software to alert you right before the end of product so you can store less and right amount of product
• Draw up returns policy for damaged and unsold goods
• Separate the package waste to use it for recycling
• Use plastic crates ot totes instead of cardboard boxes that are just for single use
• Involve your employees while you plan out on reducing waste or wastage control
• Educate your staff in opening the packages carefully to allow reuse
• Compare the cost and service provided by waste contractors

3. Improve your security

When you have so much to save there is obvious that little bit of leakage and fraud is expected. Therefore to avoid the leakage from your inventory and other departments which can lead you to severe losses later, you need a good strength in your security to prevent theft and fraud from your employees.

Use dependable software that can take care of your inventory and accounts which have high level of security so your important and confidential will stay within the walls. This way you can prevent losses and theft from your inventory.

4. Equipment

• Use re manufactured equipment for your store
• One time investment, get a highly durable equipment
• Install reusable air conditioner filters
• Recharge fax and printer cartridges

5. Shipping

• Order packers to do minimal and only required packaging without any over packaging
• Request the dealer to ship the products in returnable containers
• Replace card boards with durable
• Make a system to return the card boards and foam pellets to reuse
• Order merchandise that are non perishable in bulk

Reach Inventory management software and Supply chain management software can be of great help for a retail store trying to reduce cost. They are cloud based software that gives bank level security and easily integrates with other software and is user friendly as well.

Their features include:

• Order management
• Manufacturing management
• Warehouse
• Point of sale
• Lots and bar code management
• Project
• Accounting
• Invoicing
• Operations and process
• Loyalty management
• Ad-dons
• Tally import
• Proof of document
• Purchase
• Sales
• Access
• Multi company
• Auditor view
• Mobile application
• Bank synchronization
• Multi branch

For more information click on contact us. For 15 days free trial of Reach inventory management and Supply chain management software click on >> Demo Inventory >> Demo Supply chain

Sumathi

I’m a tax expert with over 10 years of professional experience. I’ve gained practical insights on GST and other Taxes during my tenture as a Tax expert and GST Trainer in Reach Accountant.