PKF Texas: The Entrepreneur’s Playbook® - Negotiating with Venders

One tip on how you can free up some cash flow for next year.

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Greg Price
Episode: 223
September 12, 2009

Summary:

It’s almost fourth quarter. Year-end is the perfect time to consider your expenses and think of ways to lower your costs. Greg Price lists several areas ripe for price adjustments and offers ways to free up cash for next year.

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Greg: This is Greg Price with PKF Texas' Entrepreneur's Playbook.

As we enter the fourth quarter of the year, many businesses have begun their budget process for next year. Take this opportunity to look at where your money is going. Many companies tightened their belts in 2009 and aren't sure if and where to cut for 2010.

Now is the perfect time to start negotiating with your vendors. Often businesses sign contracts and don't look at them for years. Or, they ignore incremental increases and don't check for competitive pricing.

Can you negotiate a lower advertising rate? What insurance plans are available for your size company? Is there a way to decrease your printing costs by bidding out a job? Can your vendor offer a bundled deal if you use multiple products? Ask about new products that might be a better fit for your company.

By negotiating with your vendors now, hopefully you can free up some cash flow for next year.

To read and comment on the PKF Texas' Entrepreneur's Playbook, visit my blog, fromgregshead.com. PKF Texas - The Fit That's Right!