3 Ways Good Business Relationships Reduce Overhead



Reducing overhead is essentially a never-ending task for almost every business. Ultimately, however, there are just only so many costs you can slash, chop, slice and dice. Sometimes, cutting overhead is not about what you take away from your budget, however, it's what you add in other areas. Building and developing great relationships is with your customers, vendors and suppliers can have a shocking effect on reducing your overhead. Here are 3 ways developing great business relationships can help you significantly reduce overhead. 

Emergencies 

Most companies and businesses will charge more for rush orders because it generally requires that they put other orders on hold and switch gears to work on yours. On the other hand, rush orders generally don't cost any more in materials or supplies to fulfill. When you have a good relationship with your vendors and suppliers, they will often go the extra mile for you without charging you for it. If you suddenly have the opportunity at the last minute to take over someone else's booth at a vendor fair and have a good relationship with your screen printer like Schilling Graphics, you can often get promotional materials whipped up overnight without a hefty extra fee. 

Customers 

Research shows that it costs almost five times as much to attract a new customer than it costs to keep an existing one. In addition, the probability of selling to an existing customer is 60-70%, versus only a maximum 20% chance of selling to a new customer. Developing good relationships with your customers and clients will not only help you keep them, it will often help you build your business as well, since 90% of customers say that their buying decisions are influenced by positive online reviews. Which leads us directly to our last point... 

Marketing 

Not only will your best customers be the ones most likely to leave positive reviews for you on influential sites, they will also be the most likely to share about your product or service on social media. The more information about your business, product or service is shared, the higher it will climb on search engine rankings. Of course, you want to make sure you give them plenty of things to link to, talk about and share, so you will definitely want to have a good quality website, offer plenty of content on social media and regularly post blogs or articles relating to your business. While an e-mail blast is of course a great way to talk about an upcoming event or sale, nothing beats the kind of publicity you get when your loyal clients, consumers and fans share about it on social media. 

Whether it's with your clients or customers or other businesses, having good relationships is a vital part of doing business. If you think about it, you're more likely to do a favor for someone you like than someone you don't like and the same is true in business. In business, as in life, if you scratch their backs, they will scratch yours when you really need it most.





I hope you enjoyed this article about was a good business partnership can reduce overhead and maximize profitability for both companies.

Interested in more articles about cutting business costs?

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Published by Michael J Schiemer
Owner of Bootstrap Business
Money - Marketing - Motivation
Digital Marketing | SEO | Social Media
Mike Schiemer Builds Better Business

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