What can we do about inflation and rising bills?

[JuliaClementsRoche]

Does anyone have any top tips or ideas to help deal with inflation and rising bills?

 

[MBE2017]

Look at everything, costs, payment terms, potential new suppliers, working practices etc to reduce your costs. After that, then do the same regarding your customers, reduce your exposure by reviewing ALL credit clients, payment terms etc.

In tough times, in my forty years and three bad recessions in business experience, it is YOUR own clients going bust and owing you money that kills many businesses the most with cash flow problems. Too many seem to think they have to offer credit, why? Many banks will be refusing loans, or imposing tougher criteria, learn from them and do the same.

 

[JuliaClementsRoche]

Thank you for taking the time to reply. Some really good insights here - much appreciated!

Look at everything, costs, payment terms, potential new suppliers, working practices etc to reduce your costs. After that, then do the same regarding your customers, reduce your exposure by reviewing ALL credit clients, payment terms etc.

In tough times, in my forty years and three bad recessions in business experience, it is YOUR own clients going bust and owing you money that kills many businesses the most with cash flow problems. Too many seem to think they have to offer credit, why? Many banks will be refusing loans, or imposing tougher criteria, learn from them and do the same.

 

[STDFR33]

Earn more.

 

[fisicx]

Spend more on marketing. Invest in more efficient equipment and processes.

 

[Paul Kelly ICHYB]

1. Put your prices up.
2. Reduce costs.
3. Increase sales.

 

[nelioneil]

Spend less on avocado toast brunches.

Says every rich person...

 

[fisicx]

Close down the business and go get a job. Let someone else worry about inflation and heating.

As an aside we didn’t get central heating until I was a teenager. We just had a coal fire in one room. Now I’m grown up we have a log burner. The central heating only comes on in the morning. Our heating bills are low.

 

[Paul Norman]

As individuals, we just have to get used to a reduced standard of living.

As businesses, we should be used to adjusting to cope with changing circumstances. That is not always easy, or obvious, or immediate. But the brutal truth is, it is a necessary business skill.

And get used to longer queues at food banks. It's what you all voted for.

As an aside, just to be annoying, my shopping bill for food last week was 50Euros, and my heating bill was zero. The 5g broadband costs me 29 Eu per month.

No. It is not perfect here. But I do like it.

 

[PrazFinPoint]

Not clear to me what business you are in - but the reality is with cost pressures is to find a way to transfer the cost pressures to the customers, i.e. increasing the prices to transfer the cost to the customers. There is no loss of customers because the industry players would play the strategy or alternatively if you can absorb the costs, its time to keep the prices as is, capture customers from competitors and built loyalty for recurring business well into the future.

 

[japancool]

Buy fresh food and cook, instead of take-aways and pre-prepared meals.

Cut back on blackjack and hookers.