Schooley Mitchell Business Optimization Specialist Lori McDowell proudly serves on the advisory board for TENEF USA, a non-profit dedicated to building strong communities by empowering and educating youth. She recently presented two students with scholarships at Humble ISD’s scholarship ceremony. Congratulations, Karlie and Cameron! We know you will go on to do great things.
Many of us have crossed our fingers in hopes that inflation wouldn’t be a long-term consequence of the tumultuous global economy. However, it seems the verdict is in on inflation; it’s here to stay, and we will be feeling its effects for several years.
So, as a business owner, what do you do? How do you adjust your plans – which have already likely faced a lot of changes in the past three years – to account for climbing, potentially unpredictable, inflation rates?
There are wrong answers.
You can make decisions that might pad your bottom line initially but, at the end of the day, aren’t in your business’ best interest. You can upset your customers by raising prices, upsetting your investors – or your own bank account – by cutting margins, or upset practically everyone by cutting corners to cut costs. The latter option potentially includes layoffs, which lead to understaffing, an issue that can be fatal for many businesses.
Most owners will ultimately resort to raising prices, then look for clever ways to mitigate the fallout. And, while this might be the decision that keeps your business afloat, it’s not your best option.
Focus on your indirect operational expenses instead.
Indirect expenses are costs not associated with your cost of goods sold or labor; this includes cost categories like telephone and internet, credit card processing, waste disposal, facility supplies, uniforms, and more. Altogether, indirect costs can represent around 15% of your business’ operating budget.
Indirect cost procurement is the process of finding sustainable reductions to these costs; meaning the reductions increase your bottom line without impacting your business’ operations.
If my experience as a cost reduction expert has taught me anything, it’s that far too many business owners take their indirect expenses at face value, because they simply don’t have the time or resources to do the necessary investigation and negotiation to reduce them. But freeing up any of your funds is critical as inflation persists and could be the difference between your business operating profitably.
Schooley Mitchell reduces these expenses by an average of 28%.
Schooley Mitchell ensures businesses and organizations are getting the best services at the best price – all while identifying billing errors, eliminating redundancies, and improving efficiency. We leverage proprietary software, best-in-class pricing databases and long-standing relationships with service providers to find savings, and monitor your accounts on an ongoing basis so they remain optimized.
Schooley Mitchell’s work is based on a symbiotic, mutually beneficial model – we are driven by producing results for our clients and have no ties to vendors or service providers. Our fees are self-funded by a portion of the savings we find – no savings, no charge to you.
As a Schooley Mitchell consultant, my job is to spend the time and resources reducing your indirect operational expenses, so you don’t have to.
Instead of cutting staff or services in the face of rising inflation, give me a call, and let’s talk about a risk-free way of protecting your business’ bottom line.
In this video, Schooley Mitchell Business Optimization Specialist Keith Crockett shares the types of clients he’s interested in.
In this video, Schooley Mitchell Strategic-Partner Rich Bello shares what he’s most excited for when it comes to his new business.
Schooley Mitchell Strategic-Partner Lori McDowell recently sponsored the flower wall photo booth at the FamilyTime Hearts of Gold Gala and donated Houston Astros tickets for its auction.
FamilyTime Crisis and Counseling Center promotes the mental health and wellness of the community, and provides safety and support for survivors of abuse.
If you are looking for a great experience at the butcher shop, you have to check out Great East Butcher Co. in Scarborough. The owners, Rob and Tiffany McKenna, have a wonderful shop with more than just meat. You can find local craft brews, wine, and gifts for the host or hostess. Check them out!
Let’s face it – shipping is getting expensive at the same time as consumer pressure is rising for it to be free. Your business needs the right solutions to balance your profits and losses – and without careful optimization, shipping could be one of your biggest pain points.
In this article, we’re looking at one of the solutions that is increasing in popularity for freight 150lbs and over – Less-Than-Truckload (LTL).
When shipping ground domestic in North America, you essentially have three options:
For goods under 150lbs, you are likely using SPS services, most commonly offered by providers like UPS or Fedex. FTL is for a shipment of goods that use the space of an entire truck-trailer. LTL is the balance in between; it’s a solution for goods between 150-15,000lbs, that do not take up the space for an FTL shipment to be necessary.
Rather than paying per parcel, like in SPS, or for the full truck, like in FTL, the shipper in LTL shipments pays for the space its goods take up on the truck. The rest of the cost of the truck trailer is divided among shippers paying to have their goods transported. LTL operates on a ‘hub and spoke model’ where local terminals are the spokes and larger central terminals are the hubs or distribution centers.
Rates are typically dependent on several factors:
There are several benefits of choosing LTL as a solution. These include:
Likewise, some providers offer additional perks for LTL customers, such as inside pickup and delivery, advanced tracking, and dedicated support and expertise from the LTL provider.
If your business regularly ships goods, and those goods weigh over 150lbs, you might be overspending if you don’t have an LTL solution implemented. If you’re only using FTL, and either waiting until you have a full truckload, or sending shipments in underutilized trailers, you’re wasting money.
Crestview Auto Service has been proudly serving Saskatoon and the area since 1984. They provide personalized car, light truck, motor home, and trailer maintenance services and repairs. Their licensed service advisors and technicians provide you with the highest level of automotive service available. They want to help you save time and money through proper vehicle maintenance. Their service advisors take the time to explain needed services or repairs and provide you with an estimate for approval before proceeding using our convenient digital reports. They want you to feel assured that the amount you pay will never be more than the amount you have authorized.
Community Options is an Edmonton-based non-profit organization that provides inclusive education, childcare, and additional childhood development supports to children and their families in the Edmonton area. They exist to ensure that every child acquires the skills they need to reach their full potential, regardless of developmental delays, finances, or other barriers.
