Thursday, 16 June 2011

If You Don't Ask ....

A simple message today:  "If you don't ask, you don't get".

Today's message is so blindingly obvious that those of you not involved in controlling a business will think it is ridiculous to even say this; but I suspect others will likely think "Of course we should ... why don't we?"

And the staggering insight is *drum-roll* ...

Renegotiate all your key supplier contracts at least annually.

Now before shrugging and getting on with your day, test for a moment if you actually do.

When did you last competitively tender your courier contracts, email service providers, cleaning contractors, office supplies, packaging suppliers, Utilities, Insurance, security, IT support, merchant services provider, payment gateway?  If you have not tested the market you will be wasting money.

Have you had all of your key goods suppliers in to renegotiate supplier terms: settlement and over-rider discounts, payment days, scale discounts?

In my previous consulting life one of the simplest "products" we ever sold was a 'non-people cost' cost review.  Just the process of telling suppliers it was happening and inviting them in would would lead to them turning up with offers of improved terms.

So make sure this basic discipline is in place -- it normally isn't.

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