Running Costs and How to Reduce them!

Posted in Cost Detective by Marcus on November 19, 2013 No Comments yet

Running Costs and how to reduce them!

[Reward for reading the article at the end!]

We at The Cost Detectives work with a number of charities every month and although costs can differ widely between organisations the relentless pressure to reduce them and get value for money is always the same.

Whether it’s champagne and fish tanks in the private sector or sleeping bags and Gift Aid support in the charitable sector, we have found the same basic questions can be asked of all costs.

 

The three most important questions

 to ask when looking at any cost.

 

1    Is that cost really necessary?  [Can we just get rid of it, just because that is the way it has always been done does not mean it should continue that way. Challenge the costs very existence.]

 

2    How can we be more efficient? [This could mean something as simple as turning the lights off or using free technology available on the internet, or making processes work smarter.]

 

 

3    Can we renegotiate with our suppliers, if not can we change them? [Many suppliers will negotiate, you maybe surprised and indeed there are many hungry suppliers who will provide better and less expensive products and services.]

 

 

If you can ask these questions and take action on the answers then you will go a long way to ensuring that you are using your income wisely for your charities chosen passion.

 

Often it is a case of finding the time to ask for help. For example, we are often surprised how many companies are happy to help charities especially those with local connections, equally we come across others who treat charities as just another customer and charge whatever they can get away with. Most charities we see have a mixture of the two. But do find the time to ask.

 

The key is not only to ask the four questions but also to take action!

 

Reward Time!

 

As a reward for reading the article here are three tips that you can take away with you now and potentially save thousands of pounds in your charity. So copy these to your finance team now, you may even get them to make the coffee for a change as a thank you.

 

3 Cost Saving Tips

 

1    If you do not know when your energy contracts end then find out, otherwise you will be rolled over into a new much higher, above market rate for years to come.

 

2    Have a look at your phone bill, if you are paying a minimum call charge, even if the call is one second long then you are paying too much. Also if you are paying over 8 tenths of a penny per minute for local and national calls then you are paying too much.

 

 

3    If Vat is actually a cost for your charity then check you are paying the reduced rate for all your energy and water you could save 15% off every bill!

 

 

The Cost Detectives are a Cost Reduction company, who help all types of organisations by identify cost savings. We help a few charities each month for free. Follow us on Twitter for more tips or just email Marcus@thecostdetectives.co.uk  with any questions and help.

 

 

 

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