Welcome to this week’s Premier Business Operations newsletter…

So we are now 2 months into 2011… how are your numbers comparing to same time, last year?  Better or worse?  If worse, have you stopped to consider why?  The easy answer is the economy, but what can you do differently?   Remember, the longer you wait to take action, the deeper hole you will find yourself standing in.  Before I dive into this week’s newsletter, I just wanted to remind readers that previous editions can be found online at our blog or alternatively by going to the Premier Business Operations website.  I also wanted to thank everyone that has gone to our Facebook page and become a fan of Premier Business Operations.

For those of you that have not followed Premier Business Operations on Facebook, earlier in the week I posted the question, “how will rising fuel prices affect your business?”  In case you’ve been living in a cave, prices at the pump are up 24% from a year ago and 10% since the beginning of the year.

With an economy fueled by gasoline, these rising costs can have a significant impact on any business owner’s bottom line.  The impact is probably most severe for the small business owner as it impacts everything from the cost of goods, shipping, cost of vendor services, etc.  If the rising gas prices haven’t hit you yet, it’s only a matter of time.

So what are you doing about it?  Are you passing along the increased costs to your customers or reducing your bottom line in hopes that things will “return to normal?”  I have to admit the options aren’t obvious to each type of business and situation.  Before overreacting to the rising costs of fuel, make sure that you truly understand the situation and impact to your company.  Things to consider:

  • Are your suppliers raising their prices to you or enacting some sort of “temporary fuel surcharge?”
  • Have your competitors raised their customer prices?
  • Can you renegotiate supplier agreements through a longer term contract or increased volume purchases to ensure product costs stay low?
  • Can you optimize your company travel costs by combining multiple trips into one?
  • Can you eliminate unnecessary travel through telephone or videoconferences?

 

While every situation and business is unique and business cost reduction may not be easy, the knee jerk reaction of simply passing along the costs to your customer does come with a degree of risk of losing customers…  remember one of the hardest things to do in business is to regain a dissatisfied customer.

If you’re seeking help to better understand your company’s profit structure, Premier Business Operations has the ability to help you analyze your business situation, develop a recovery plan and guide you on the road to success.  To find out more about how Premier Business Operations can help you achieve the success you envision, please visit our website at or email us at information@premier-business-operations.com

Also for all of you Facebook users, you can now find us and “become a fan” on Facebook for more regular updates as well as to read contributions by other followers.  Simply search for Premier Business Operations or click the icon…

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