When times are tough

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It makes sense to save money. In fact saving money really means making money when you are in business.
Bed and Breakfast Inns have frequent demands on their budget and it makes sense to look at all the costs associated with running the business and check whether you are getting value for money.
In reality, slashing expenses can often increase overall profit margins much more than adding a few extra bednights.

We’re all busy, but going through and evaluating expenses regularly, is just the smart thing to do.

Credit Card Processing

If you process a lot of credit cards, you should be getting a quote for processing, every few years. Look online for vendors, as local banks and merchant providers are often the most expensive. We see a lot of clients that are paying 1-2% too much for processing.

Do the calculations, that amounts to a lot of money over time. If you process $5,000 a month in credit cards, you could be paying $650 to $1300 too much.

Consider whether you need a merchant account at all. If you are processing less than $2,000 per month, it is likely less expensive to use a third party option such as PayPal.

Staff Costs

It is harsh, but are you paying employees to sit around doing nothing? If your business has slowed, it may be time to let someone go. Similarly, if you have an employee that isn’t performing, letting them go can free up a substantial amount of money that can be used to hire someone else, or simply increase your profit margin.

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Tags: bottom line, costs, credit cards, saving, staffing

Monday, October 3rd, 2011 at 1:11 am and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “When times are tough”

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March 12th, 2012 at 9:17 am
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