David covered cost cutting strategies in a number of areas in a retailer’s business. A few highlights:
Cash Management – Pay no bill before its time!
Space Costs – If applicable, challenge your most recent property tax assessment
Inventory – Computerize your inventory system and make buying decisions based on facts!
Be Smart About Current Inventory – If something sells quickly, reorder it.
Personnel – Having a cost-cutting brainstorming session with your employees
Marketing, Advertising and Promotions – Re-negotiate any ad contracts (TV, radio, billboards) for lower rates or shorter contract terms
Insurance – Consider raising deductibles on liability insurance
Taxes – Don’t over pay your income tax quarterlies – don’t’ pay based on previous year’s business; pay based on accurate estimates. And, if you’ve already overpaid, ask your accountant to do a “quick refund” using IRS form 4466.
David also warned retailers to think twice when making cuts related to Finances and Human Resources as their implications can be detrimental to business.