Earn More Money – 12 Out of the Box Ideas to Cut Down Business Expenses

While the general goal of your business should be selling your products are services, don’t forget there are other ways to earn more money.  If you’re facing a slow period, these are some quick ways to make a little more money or just keep more of what you have.

Negotiate All Your Recurring Bills

Unless you’re looking to switch, you’re probably just paying bills like internet and phone each month.  While they’ll often throw discounts at you when you try to leave, don’t assume that’s the only reason.

At least once a year, call a customer service rep and ask what specials they might have running or other ways to reduce your bill. These discounts are there for the asking.  You might indicate you’re thinking of switching, but you don’t even need to threaten.  Just say you’re evaluating your options and comparing prices.  I did that and knocked 20% off my cable bill instantly.  I wasn’t using all the data on my mobile phone plan, so a quick phone call saved me about $50 a month by downgrading.

Anything you pay on a regular basis could be renegotiated to serve you better.  It may not be a reduction in fees, but more about the right plan for your needs and budget.  When I spoke with my insurance agent, I realized I was doubled up on coverage.  I was able to reduce some of my insurance fees without lowering my coverage.

Always approach these situations like a business owner.  Smart customer service or retention reps know it’s better to keep a customer than try to get a new one.  Use that to your advantage.  If you see an exclusive deal for “new customers only,” remind the agent they are punishing loyalty.  That phrasing can get them in the right mindset.

Check Your Bills For Hidden Fees

Companies do this all the time and I hate it.  I tend to carefully watch my bills, but not every business owner does.  When you see a price increase, see if there’s a fee suddenly tacked on.  My ISP recently added a modem rental fee.  I used that fee as a negotiation tool to request a lower rate.  My credit card processor added a “compliance” fee which I was able to remove just by calling.

When you’re slow, that’s the time to pull out a year’s worth of bills and see if you’re paying for something you don’t need.  That’s when I noticed my bank was charging me $3.00 for a paper statement fee.  I was only able to get a month of it refunded, but at least going forward I won’t pay those fees.

Earn More Money By Making It Work Better For You

Banks might be charging you fees which you can reduce, but you might also check if your money is working properly for you.  I tend to keep a cushion in my bank account for emergency expenses, but I realize I wasn’t earning the proper interest on that.  After some research, I decided to put some of that money in an online bank account as well as a CD.  That earns a bit of interest for money that was just sitting around.  Check with your tax advisor about reporting this income.

Look for Corporate, Alumni, or Association Discounts

If you’re working for someone else while growing your computer repair business, check to see what discounts your employer gives you.  Large companies often negotiate discounts for their employees with national chains.   For example, Microsoft lets employees use Microsoft Office at home.  That’s a cheap upgrade for you.  If you’re married or in a domestic partnership, your spouse’s employer’s discount often extends to you.  I’m saving a ton on my mobile bill because of that.  I didn’t even need to switch the name on the account.

Before my spouse’s employer gave us a discount on our mobile bill, I was using the rate my alma mater offered.  I signed up with an .edu email address with them and used that to get a discount on my phone.  Some programs require you to be a student while others just ask for affiliation with the school.  My school also has a discount insurance program for alums.

There are other trade associations out there for business owners.  Your local chamber of commerce might have a discount program.  That might just be amongst members doing business with other members, but it’s worth checking into.  Again, don’t forget your spouse or even your kids.  Association discounts might extend to family members, so if your spouse gets a discount through her employer you might be able to save money.

Ask for a Payment In Advance or Cash

Smaller companies tend to offer this more.  Sign up for a quarter or a year at a time and ask them if they’ll give you a discount. Don’t assume because it’s not listed on the price sheet they don’t offer it.  Remind your vendors they’re ensuring your loyalty and saving money on statements and processing fees.

As business owners we know taking credit cards costs money, so if it’s a large purchase, ask for a cash discount.  You won’t get your points (see below) but balance that with potential cash payments savings.  If your credit card offers a 2% bonus, you’re still ahead with a 3% cash discount.

Make-Your-Own Discount

After you take all the above advice, try combining a few of these options to save even more.  For example, “If I pay you to cash today for one year of service, will you give me a 5% discount on the projected yearly fees?”

Asking for a discount never hurts.  Don’t push or harass the vendor, but don’t leave potential money on the table either.  I know many MSPs and break-fix shops that offer discounts for payment in advance or long-term contracts.  That’s why you should ask your vendors for the same.

Don’t Pay Retail or Sales Tax

If you’re buying stuff for your business either to use or for resale, don’t pay for things like a consumer.  We’ve talked about using a business-to-business distributor in the past and that’s still the best way to buy stuff.  If you don’t have the volume for a distributor, or just need parts in a pinch, you need accounts in other places.

Depending on where you live, you might be able to avoid sales tax for retail items.  Big box retailers all offer tax-exemption cards.  If you’re getting charged sales tax for resale items and then passing it along to the client, you’re overcharging them.

In Fact, Don’t Pay at All

No, don’t engage in software piracy or anything.  What we’re talking about here are NFR (Not For Resale) discount programs.  Since you’re in the computer industry, you’re influential in suggesting products to your clients and other computer pros.  Use that status to your advantage.  Tell a vendor you’d like to try their product and potentially suggest it to clients.  With software, that’s pretty easy.  With hardware, it can be a bit more complex.

Hardware vendors might give you a discount, but you’ll have to join their partner program. These programs sometimes sell directly to you while others load discounts into your distributor’s systems.

Review Your Credit Card Rewards Points (And Interest)

Without making it your full-time job, you still need to check if your points are working best for you.  Just like your recurring bills, credit cards are always offering special points and reward systems.  A quick call to a customer service rep might result in a better program for your needs.  Business cards sometimes have point multipliers for business-related purchases.  Mine offers me a 5% bonus when I pay my phone or internet bill with that card.  That was a new program I didn’t know about until I called. You’ll earn more money the more money you spend.

If you don’t pay your bill in full every month, watch out for any point bonuses being eaten up by interest and other fees.  Just like everything else, your interest rate could be negotiable, so ask for a lower rate.

Double and Triple Dip Your Credit Card Rewards

Again, you don’t need to be crazy about this but might as well look for some opportunities to earn more money anywhere you can.  The first place I start is Ebates, which I’ve covered before.  That gives you a percent back at a ton of online retailers.  It also covers brick-and-mortar operations.  If you don’t use Ebates, many credit card points programs offer extra points using their portals.

If you take clients out to eat or eat on the road, your hotel or airline frequent flyer account might be part of Rewards Network or another loyalty program.  I have all my credit cards linked to my American Airlines account.  I get extra points on my credit card for dining out and then my airlines give me points too.

Another cool program I use to earn extra rewards is Drop.  That gives me additional points on top of my credit card rewards.  For example it works at Amazon.  I have an Amazon credit card, so I earn extra points on it.  I then earn even more points on Drop.  If that isn’t enough, I then use an Amazon affiliate link to make more money.

Don’t Forget Affiliate Partner Programs

Amazon is the obvious one many computer repair technicians know about, but many vendors give you a little kickback when people buy through a special link.  You don’t always want to post these links on your website since it may send customers away from your website.

I use affiliate links when I’m suggesting a client a product on-site, through email, or through social media.  If I’m buying it for resale to a client, that’s where I earn more money with the double and triple-dipping with points.

Price-Protection Money Back

In the computer industry, prices are dropping all the time.  Many cards give you protection against price drops within 60 or 90 days.  There are even apps that will track this stuff for you like Paribus and Earny.

Is This All Worth Your Time?

If the business is busy enough, no.  These are relatively small amounts of money compared to your billable hours.  However, when it’s slow, a little research might pay off in the long term for your business.  At the very least, you might get enough points to pay for a cup of coffee or a pint.

Written by Dave Greenbaum