Keeping business costs low is important for maintaining a high profit margin in retail and service businesses. While businesses use a variety of budgeting methods to keep costs down, one often overlooked area is the cost of certain administrative supplies. Supplies like till rolls, ink ribbons, and related items can quickly create a dent in your budget if you aren’t careful about choosing the right consumable products.

Till rolls are, of course, necessary for any business that offers goods and services to the public. Unfortunately, businesses often spend more than necessary on till roll paper and related supplies, and since these are consumable items, the cost can begin to add up quickly. If you need to cut costs to increase the profitability of your business, choosing the right till roll paper can help you achieve this goal.

You should begin by comparing your current supplier’s prices to those of competitors. Not all suppliers will be consistent in their pricing across every product line, so your comparisons should be based on the types of products you use the most. You can maximize your cost savings by being sure the supplier you choose offers the biggest advantages in cost across the products you’re likely to buy most often.

In addition to choosing a reasonably priced supplier, you’ll want to compare the cost of different types of till rolls. The least expensive option is economy paper single-ply till rolls. Grade A paper is brighter than the standard off-white economy paper, but isn’t necessarily more expensive. This is the best option if you don’t require carbon copies of printed receipts.

Some registers are also able to create duplicate copies. For any business that requires multiple copies of receipts then you should begin by comparing the cost of printing duplicates one after the other using single-ply paper. This might seem cheaper initially, but when you consider the extra costs of using the printer ink it’s not always the cheapest option. Now work out the cost of buying double-ply paper and then factor in that you’ll be using the printer ink less often as each receipt is duplicated as it’s printed.

Other till roll options include thermal and impact action paper rolls. Thermal till roll paper is most often used in chip and pin machines, and for industrial use. Impact action paper is a type of carbonless paper also used in chip and pin systems that eliminates the need for ink printing ribbons, since the printed images are produced by the impact of the printing pins on the paper.

By working through the costs of your current consumable items you can help to reduce your business expenditure and in turn could help to improve your business’s overall profitability.

Pos-Consumables are the leading UK supplier of retail consumable products including till rolls, price guns and labels. Pos-Consumables of retailfer free overnight delivery and keep all products constantly in stock

In a recession all small business owners need to be alert, keeping a watchful eye on their enterprise.

So what should they be keeping an eye on?

What is most significant? What should they strive to achieve?

Is extra ‘sales’ or ‘turnover’ or ‘profit’, one of your answers? You’ve made a mistake! – The most significant is ‘cash’.

It could be unwise or illegal to trade with no profit but it is not possible to trade without cash.

As economic downturn begins to bite there will be victims; weak or unstable firms will be ruined.

Astonishingly, profitable businesses with powerful business models will also go bankrupt; regardless of their sound business, it will be the shortage of cash that pushes them over the edge.

So how do you raise your revenue during an economic downturn? The majority of small business entrepreneurs will say “The best technique to raise revenue is to increase sales, marketing effort and spending, do more trade”… “by lowering prices we can gain more business”.

Invariably incorrect. This is the way to become a busy fool. Do yourself and your family a big favour! Sit down and spend ten minutes playing with the numbers. (or get your accountant to do this with you). See how much extra profit is generated by a 5% or a 10% price increase. It may be 30 or 40%. Yes, you might lose some business, but overall it’s likely your profits will be higher…..and you will be doing less work.

Concentrate on the value you provide to your customers, this could be making things convenient for them, providing quality, providing great customer service – all these things matter to customers much more than price.

Therefore, getting back to what matters you need a system to tell you what your position is – to predict if you are going to run out of it, we are talking of course about the cash.

1. Updated Accounts are required – every week, or at the very least once a month (not once a year) – it is your business. Therefore, it’s your responsibility to identify what you owe, how much you are owed, how much you have got and how much you are going to need.

2. Set out a cash-flow forecast – consider carefully how frequently you need this, every quarter/month/week. Failure to do it frequently enough to keep you in control is inexcusable. Your accountant can assist you or you can buy a book from Amazon, also get or build an easy excel spreadsheet that you can use to track your cashflow.

3. Clarify all terms in your initial contract and on all invoices.

4. Check new customers for credit worthiness – the internet makes this straight forward – and watch them until they have proved to be reliable.

5. Have a system for invoicing, following-up and collection. Be reasonable but be firm. Talk to anyone who owes you money. Listen. Be clear and be firm. It is your money that they owe you. Here’s a simplified version of the process we have, but you will get what I mean:

Day 1: Issue invoice as soon as work/sales has been completed

Day 7: Phone up to verify receipt of invoice with the right person; confirm that you can expect the invoice paid on the appropriate date.

Day 14: Polite email if no payment received “We are sure that payment is on its way to us but just in case it has been overlooked”

Day 20: Phone call “re outstanding payment”, asking when it was due to be paid.

Day 25: Send a letter outlining the communication to date (including their so-called promises to pay) and explain that you can call within 48 hours to find out how the issue will be resolved

Day 27: Phone to confirm payment has/is going to be made and when it can be expected.

Day 30: Send letter including the ‘Statement of Account’ and ‘Terms and Conditions’ they agreed to and saying what you intend to do next.

The ‘what to do next’ bit can be difficult. You should weigh up how much the client is worth for you , and how they may respond. You can say you will refer the issue to a lawyer, and a straightforward lawyer letter shouldn’t cost much. After that it may be time to threaten Court action, or to issue a statutory demand (the form can be found on some websites and costs free). You might come to a decision that the client is valuable to you, and you would choose to give a little longer. Keep in mind though – that is your money!

The whole process informs your customer that you mean business and that you are not the supplier to string along. Normally it is the case that if they are permitted to take advantage – they will!

If you are polite and firm, and clarify that you are purely following the process they signed up for, then they’ll normally understand.

If it is an issue, reflect on carefully if you desire to do business with a firm that doesn’t keep up promises and tries to procrastinate over paying money that belongs to you!

6. Keep cash on your hand as long as you can. Here is the other side of the coin! You could delay payments owed to your suppliers. Bargain more favorable payment terms & conditions. Understand that not paying suppliers when cash is tight could be a very temporary way out, leading eventually to failure. If something in the business has gone wrong in the beginning eg lack of revenue, there should be information to hand to warn you that.

7. Find yourself a reliable accountant! Often, many small business owners manage to survive without profit and loss, balance sheet and cash flow information on hand. But how long can you be lucky for? Choose your own danger!