Everywhere you look costs are rising. With costs predicted to rise even further in 2023, making small savings in different areas of your business can have a big effect and help you scale into the future.
EasyVend has put together 5 top tips that your Food & Beverage Business Can Use to Beat Rising Costs in 2023.
Let’s get into it!
1. Perform a Cost Analysis
To survive rising costs your business needs to watch and monitor your expenses closer than you have ever done before. The first thing that your business should do to help ease the pain of rising costs is to perform a cost analysis.
A cost analysis is breakdown of your business’s total expenditure. Get together with your accountant and list all of your business’s expenses. Then, one by one figure out what expenses are essential and what expenses can be removed. For unneeded expenses, begin to remove them from your business. Performing a Cost Analysis will give your business the ability to identify and cut unneeded costs to maintain profitability in 2023 and beyond.
2. Assess Your Product Suppliers
With fuel, processing, and manufacturing prices going through the roof, Food & Beverage product costs have hit heights not seen before. We get it, products are an essential expense but that doesn’t mean your business has to sit back and take continuous price hikes.
To help ease the impacts of ongoing price rises it is important that your business frequently assesses your product suppliers and the prices that they are charging you. There are an abundance of Food & Beverage suppliers available in Australia. Some providers may be willing to offer you a much cheaper rate than your current supplier. Switching to a cheaper provider will put your business in a better position to maintain and accelerate growth.
3. Increase Your Prices
With your expenses growing, your prices need to follow. It is unsustainable to continue offering your current price whilst all your internal costs go through the roof. To beat rising costs, it is important that your business frequently reviews your price points and adjusts pricing to reflect current market and economic conditions.
Sit down with your accountant and find a strong price point that you can use to ensure profitability whilst having the smallest possible impact on your customers. Before upping your prices, it is important to research what your competition is charging. The key to selling in a tough economy is having the cheapest and most competitive price!
4. Shop Around
How much has your electricity gone up? How about your internet? Business utilities are going through the roof, but like mentioned before that doesn’t mean you have to sit back and take every price rise.
To beat rising prices it is vital that your business hops around for better utility costs. One of the good things about the current Australian market is there are an abundance of utility providers available. From internet providers to electricity providers there are hundreds to choose from, some of which can save you thousands every year!
Make it standard practice to constantly review your current utility prices and to shop around for a better deal in the market!
5. Review Your Product Offering
A mistake that so many businesses make is selling products or services for the sake of it. The problem with doing that in the Food & Beverage Industry is it increases your costs and risks.
In difficult times like this it is important that you review your businesses product range and only stock products that sell and sell quickly. It is pointless having an expanded range with many items failing to sell. The last thing your business wants is to write off products due to them not selling prior to expiration.
With costs continuing to rise it is important that your business finds and implements cheaper ways of operating. The 5 tips mentioned above are a few good ways your business can minimise and beat rising costs in 2023.
We hope you enjoyed reading this article. To read more articles like this, please visit the EasyVend latest news page here.
For Supply Chain Businesses, EasyVend supports and automates every part of your business, freeing you up to grow your sales simply, unlike other ERP systems.
EasyVend includes key everyday features like Inventory Management, Online Ordering, Invoicing, Receipting, Automatic Credit Card Payments, Xero Accounting Integration, Route Management, Business reporting and more.
Using the latest technologies, EasyVend removes common frustrations making business more streamlined today!