How to cut retail stores running costs
Updated: May 18
As we know, running a business properly, requires operating costs. While you can’t fully eliminate operating costs, you can reduce it. There are many reasons for cost cutting; it may be due to financial problems, economic downturn or low profit etc.
Here we are discussing how to cut retail stores running costs without affecting quality.
Automation has become the buzzword in the retail industry nowadays. From payment handling to customer service, automation is the future of the retail industries. Some of the major benefits of automation are error-free delivery and payment handling, fast processing and more control over scale, 24/7 support, etc. So, we can say automation is one of the best ways to reduce running costs.
For example, IVEPOS point of sale developed by Intuition Systems helps business management through its automation software. Using the IVEPOS point of sale system helps enterprises to track sales and inventory in real-time, manage employees and stores, engage with customers, and increase revenue. It’s a powerful POS software with 100+ features!
Outsourcing is another way to cut running costs of your retail stores. Small business owners can outsource some marketing tasks, advertising, IT work, hiring, etc. So, outsourcing will help them do these kinds of jobs without hiring a full-time employee.
3) Go Paperless:
Printing costs are a huge expense for all retailers. So, if you can go paperless, then you can reduce the cost easily, that means you can avoid the printer, paper and other related materials cost, maintenance cost, etc. Instead of printing bills/receipts, you can send it through an email or SMS. With the help of good retail POS software, you can send receipts as SMS/mail to customers after their purchases. Also, instead of printing offer catalogs, you can share with customers online.
4) Inventory tracking:
If you have excess stock in your shop, you need to always solve the storage spaces and costs, service costs, capital costs, product expiry issues, etc. To prevent the excess inventory in your shop, always use a good retail POS system in your store. With the help of a POS, you can track and manage inventory and avoid unwanted running costs.
5) Reduce shipping cost:
Online shopping and home delivery have become widely accepted nowadays. So, retailers can't ignore shipping these days. As part of cost cutting, retailers have now started to use different cost-cutting methods like using poly mailer bags, reducing packing size, negotiating with several carriers, and BOPIS (Buy Online, Pick-Up in Store).
The BOPIS option allows customers to make a purchase online and pick up their items in-store. With help of BOPIS, sellers can save packing charges, packing time, shipping charges, and delivery time.
6) Use social media:
Online presence plays a huge role in the success of any business. With the help of social media, you can freely promote brands, products, etc. So, this will help you to reduce advertising and marketing costs.