During a recession, businesses may struggle to generate profits and may need to find creative ways to maintain cash in their bank accounts. The post below discusses how business owners can divert overhead funds back into their wallets by adjusting regular business purchases, seeking out strategic return on investment (ROI) purchases, finding new income streams, and utilizing customer rewards programs.
Buy in Larger Quantities
Adjusting normal business purchases to reflect the current business climate is a smart way to retain more cash in the bank when times are lean. Start buying in bulk now so that when the recession is in full swing, you will still have product on hand, and you won’t have to make that purchase when things are tight. Buying in bulk is an upfront cost, but the saving happens over the course of time.
Typically, you can buy bulk deodorizers, fragrance boosters, hand soap, and detergents. Often distributors offer bulk purchases of up to 275 gallons per unit. If you have the storage space, buying shelf-stable products in bulk saves you money.
Portion Control packets are a sure way of controlling excessive product use. You can rest easy knowing that your PRO crew knows exactly what amount of product to add to the restroom tank because each packet is pre-measured and ready-to-go. Eliminating product overuse will save you money and speed up truck routes. Check out Satellite’s line of portion control products on our website.
ROI purchases involve investing in assets or initiatives that are expected to generate a positive financial return for the business. For example, a business may invest in new equipment that is expected to speed up truck routes, or may invest in employee training to improve customer service and retention. In a recession, you can alter your ROI purchases from the normal business as usual because you don’t have as much money on hand to spend.
Buy Used Equipment
Everyone wants to see new-looking restrooms with all the latest amenities; however, during a recession, if you need to replace something and are low on cash, you might consider buying used until your bank account cushion returns. Do thorough research before you buy, and always test out equipment before laying down payment to ensure it works and functions properly. Buying used is only temporary until good cash health returns. Keeping new equipment in your fleet is essential, as customers see old deteriorating equipment as a sign of an underperforming business.
Fill a Business Niche
Clients appreciate excellent services and are ready to pay as long as you deliver quality. Identify unmet needs in your area and offer services that fill the business gap. Research businesses like yours around your area. Are you providing all the services you can that customers demand? For example, can you provide bathroom facilities for high-end events? People are willing to pay nicely so their guests do not have to use a port-a-potty. A Satellite Suite or two in your fleet could satisfy a need for more elegant functions like weddings, golf outings, apple orchards, and building remodels where the current facilities are out-of-order. Another niche to fill could be providing temporary fencing for construction sites or events or grease removal from restaurants. Some of these require purchasing equipment, but the business models are similar to what you are already doing, and the ROI would help you through the lean times and could launch your business into generous financial times.
Redeem Rewards Points
Customer rewards programs incentivize customers to continue doing business by offering perks such as discounts, free products, or exclusive access to events or promotions. Satellite Industries’ Pro Perks program rewards you for your loyalty. The program allows you to use points for fun things like vacations or TVs and discount award cards for future purchases like new portable restrooms. Look for similar point-earning programs with other operations. Earning points while you spend money on the things you would normally spend money on puts you in the fast lane for money savings.
Overall, purchasing adjustments, ROI purchases, and customer rewards programs can be effective strategies for businesses looking to weather a recession and come out on top. By offering incentives to customers and making smart investments, businesses can continue to attract and retain customers, even in difficult economic times. This concludes our series. If you want to learn more recession strategies, You can read our post about assessing your sanitation business financial health here, and retaining quality employees in your portable sanitation business here.