Increase Your Profits by Reducing Your Costs
Published October 25, 2012
It sounds obvious when you say it, but how do you do it - and more importantly, are you doing it? First you will need to identify all of the costs that you are currently incurring. These range from acquiring supplies, buying equipment, purchasing advertising and even the act of selling. In fact, you could even argue that your time is costing you too much as well.
To help reduce your cost on supplies, consider buying in bulk or registering with a wholesale account. To do that, you may be asked to get a Tax ID number by the vendor which will require some paperwork on your behalf, however it should be worth the effort based on the discounts available. As an added bonus, when you use your Tax ID to purchase supplies you may not be required to pay sales tax since those materials will be used in the creation and manufacture of your product and are therefore tax exempt. Check with your local laws to make sure.
Another option to reduce your material costs is to look for alternate sources when making your selections. For instance, if you are making jewelry and you need wire for a bracelet, take a trip to the local hardware store to see what they might have available. Also, don’t be afraid to look for new uses on common materials or even re-use components from broken or vintage elements. Don’t be afraid to check out local thrift shops or garage sales to find these items. Often times, this can be quite stylish and trendy.