October 24, 2014

Little Mistakes That Cost Your Company Big Bucks

It’s not always the big mistakes that eat away at a company’s profits. Often, it’s the small mistakes that go overlooked far too long that end up costing profitability, and, sometimes, the inevitable success of the business. See if your company can save big bucks by making these small changes.

Giving Customers Too Much Time to Pay 

You aren’t your customers’ bank. Allowing invoices to go unpaid for 60 or 90 days means you essentially lent money without getting any interest in return. Change your invoice due dates to within 30 days of delivery to see more money rolling in for your day to day operations.

Not Investing in a Professional Call Center 

Having employees waste valuable production time by answering phones isn’t a good way to do business. Plus, most of your workers were likely hired for other skills, not as professional customer service agents. Invest in a phone answering service to see production go up, and wasted time and energy go down.

Failing to Check Invoices against Products Received 

This little oversight can lead to tens of thousands of dollars in losses over time. Always check to see that you’re receiving what your vendors claim, and that you’re paying for what you actually get. This process only takes a few minutes, but can reward your business with better inventory control, as well as fewer erroneous payouts.

Is your business losing money to one of these mistakes? All are easy to correct; it just takes a slight adjustment in policies and procedures. Be sure to communicate big changes to your customers and vendors so that there aren’t any misunderstandings. Soon, the improvements you’re able to make, in terms of service and low prices, will make it clear why the policy changes were necessary.