Cost-saving tips that could save you thousands
We’re in an energy crisis and bills are on the rise, so in 2023, it’s time to drill down on spend and see where any pennies can be saved (because they can equal pounds – and lots of them!)
Here are some cost-saving tips to reduce outgoings but in ways undetectable to your clients. Yes, we’re talking limiting excess spend, without scrimping on service. Let’s save!
Go through finances with a fine-tooth comb
Know your finances thoroughly to avoid non-essential costs. Leah Durrant, owner of Leah Durrant Hair & Beauty, explains: “Research and compare your direct costs, such as phone bills, energy bills, cleaning bills, etc. I saved £1,100 a year by cancelling a few add-ons that were put onto my phone bill, which I didn’t even realise were there!”
Jackie Harrington, owner of Harringtons Hairdressing in Hinckley and national educational manager at WELOVE, found fine-tuning spend equated to a saving of almost £10,000 across one year. “We would pay for the PRS PPL (Performing Rights Society and Phonographic Performance Limited) licenses to play music but now use royalty free, and changed our print magazine subscriptions to online, saving £480 a year, swapped our colour line to a smaller range, which hasn’t impacted what I can offer, but saved over £8,000 a year, plus changed our coffee brand and booking system.” It was an eye-opening exercise for Jackie. “When you start really focusing on your business, you will be amazed at just how much money you let drift away,” she adds. “Taking that small amount of time once a week to concentrate on the facts and figures, really enables you to make small changes that add up.”
Master stock management
Take time to track your stock patterns, which could prevent you unnecessarily tying up precious capital. “Focus on what you can cut back on and control,” says Clive Collins, director of HOB Salons. “Take some time out to regularly check stock, stop ordering products that gather dust, and focus on what you regularly need and use.”
Leah Durrant agrees: “Do not overstock. Only order what you essentially require as dead stock will be a big cost to you.”
Also, carefully consider the time and frequency of when you purchase. Cally Borg, who has a salon in Reigate, is strategic with ordering. “I have been taking advantage of VAT free days and wholesale monthly offers to stock up and save money in the long run,” she explains. “I have also been through all my stock and requested to exchange what doesn’t seem to sell.”
Stop waste, spend less
Small habitual changes can also impact expenditures. “We are always analysing costs, looking at what outgoings we can save on and making changes,” says Jenn Linton, director of Aberdeen’s Linton & Mac. “Little examples like swapping out cans of sparkling water for a soda stream machine, changing suppliers of refreshment stock, and encouraging the team to only plug in electrical tools when needed (they don’t need an hour to heat up!).” Jenn continues: “We are constantly encouraging the team to reduce colour waste, too – using Vish (a waste management brand – meet the team at Salon Smart in March), to make everyone aware of waste and how much it costs. It is very much a team effort.”
While taking steps to become a more sustainable business, Rory Mason, director of Rory Antonio Hair in Wolverhampton, discovered a way to reduce spend as well as waste: “We’ve found that having recycled towels helps, as we don’t need to use a washing machine or towel dryer, cutting back on our electricity costs.”
So, there you have it! Three ways to rethink, refocus and reduce spend – here’s to you reaping the financial rewards!
Dive into the Creative HEAD archives for more insights – we recommend, Seven things to do in your business in 2023 and Resolutions & Revolutions- Work Smarter, Not Harder (see page 39).