ARE you looking for ways to cut costs to improve your profits and cash flow? BigNews asked business owners for their top cash saving tips.

Sakkie Visser (pictured here) of Leaders Office Furniture in Durban, says a big saving this year has been switching to internet banking.

“We have had big savings, especially on cheques and deposits, and what a pleasure when clients pay directly into your bank account on the internet.”

Another cost-saving strategy employed by Visser has been monitoring the telephone bills to reduce the number of personal calls made by staff.

Derrick Retief, owner of Multibag, manufacturers of plastic packaging, says a major saving has been introducing planned delivery routes.

Multibag restructured their delivery routes and fees to minimize the impact of the petrol price increase.

“We now deliver to specific areas on particular days. If customers want deliveries outside of this schedule, we ask them to pay extra. Introducing the system has meant meeting with clients and explaining the need for them to plan their deliveries in advance.”

Meeting with clients has had an unexpected positive spin- off. Says Retief: “We have gotten to know our customers again and are more in touch with their needs.”

Retief also says that water shortages will increasingly force manufacturers to find ways of reducing water wastage.

“We have changed our manufacturing methods to reduce the use of water. We also make sure all taps and toilets are fixed.”

For Charles Rickens, co-owner of Rovic and Leers, suppliers of agricultural equipment, the biggest cost saving came in the form of sharing overheads when he merged his business with another.

While mergers are not necessarily the best way forward for all businesses, they can be a good way of optimizing your expertise and resources. 

In the case of Rovic and Leers, the merger brought together the manufacturing strength of Rovic and the import and distribution knowledge of HM Leers.

Explains Rickens: “One and one makes two can make two-and-a-half. I should have done it earlier.” So why didn't he?

“Everyone wants to row their own boat. It seems easier when you are the only one making the decisions.” 

Contact Visser on 031 309 7448, Retief 021 9131424 and Rickens 021 907 1700.


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