They say that product innovation drives businesses forward – and for good reason. But there’s another more neglected side of business innovation that can also lead to greater profits: cost reduction. Here we’re going to investigate the innovative way some people have cut costs in their businesses. I think you’ll be surprised by what you learn.
Simple Perks
Mr. Wong is a cost innovator at Avidian Technologies group. His idea is to offer staff simpler, more social perks. One idea of his is to ditch generic and expensive mass catering. Instead, he holds monthly potluck catering events where colleagues make their own dishes. Each of the potluck events is based on a theme. So it’s a great chance for everybody to show their cooking talents if they have any. It’s also a great way, according to Wong, to bring the team together.
Wong also innovates on the wage front too. He likes the idea of giving employees extra paid time off work instead of a raise, especially when the economy is sluggish.
Solar Rooftops
Apple’s Tim Cook announced last year that the company would be investing $850 million in solar panels. Since then they have stuck to their promise. Why? The reason, Cook stressed, was that Apple would realize significant savings over the coming years. Commercial solar installation companies now have products that make solar as cheap as coal. It’s not just Cook getting on the renewable energy bandwagon, of course. The rest of Silicon Valley is at it too. In 2014, Google signed up to a deal that would see the company provided 400 MW in the form of wind power. And last year Amazon place an order for 150 MW of wind to power its factories. Could your business benefit from cheap power too?
Charge Expenses
At 1-800-Cash Offer, they’ve started to change the way they deal with business expenses. Mr. Brandt, like many companies, uses a credit card. But it’s not any old expenses credit card. It’s a credit card that earns his company rewards every time he uses it. The company spends about $100,000 a month on marketing and other activities. And in return, it makes millions of points that can then be put towards travel and hotel expenses. It means that his company hardly ever has to fork out for travel expenses. And if he ever does have to pay upfront, he pays by check and asks for a discount. After all, the vendor doesn’t have to pay merchant fees that way.
Work In Networks
Trinity Insight knows how expensive marketing can be. That’s why Mr. Smith, a worker at the company decided to change the way his company advertised. Instead of always going through regular channels, Smith decided to try to use forums instead. Before, the company was spending a fortune on print adverts and trade shows. But since joining forums, it’s been able to go to customers directly. Smith’s strategy is simple but effective. He just looks for people who have a problem he can solve. And then he suggests they take a look at what his company’s product can offer them. By doing this, he’s got his marketing costs down by a whopping 25 percent.