Cost-cutting is a definite concern, especially this year, both personally and professionally. We all have had to evaluate (and re-evaluate) our budgets and our spending habits. What is necessary and what is not? Are we being frugal or frivolous? What determines our frugality or frivolity. If our spending is making us money, how can it be frivolous? Would we still make money in this arena without additional spending? It is all enough to make your head spin and your wallet spontaneously combust.
It isn’t always completely evident what is and what is not making our businesses profitable. We have to take our best guess and hope that we make the right decision regarding what to continue incorporating and what to eliminate. An article that I recently read discussed this subject in regards to holiday gifts for customers. Should we forgo this additional expense in the economic downturn? According to the “experts” interviewed, we should NOT eliminate this cost.
Our customers are our profit builders. As much as we need to save money and reorganize our budgets, we should not forget the people who have brought us, and continue to bring us, our success. Our customers and clients deserve to be recognized and rewarded for their loyalty. Without them spending money, we would not be thriving. Shouldn’t we spend on them and show our appreciation?
The expense does not have to be exhorbitant. One entrepreneur organized gift baskets that contained products of her customers who were in the food and beverage industry. She treated her customers while marketing for her clients. She spent little money with the possibility of making more money for her clients and herself. Brilliant.
Some customers, especially those who give repeat business, would be appreciative of discounts. Saving money is a gift to everyone. Offering a discount, a coupon, a free item, or a bundled price is a nice gift to the customer and yourself, ie. more business. The gift does not have to be extravagant, but should have significance to the customer. We need to cut costs – sure; however, we need to be mindful of those paying our bills and take a little time, effort, and yes, money to let them know that they are appreciated.
