Mar 28, 2009

Negotiate Deals to Cut Your Costs

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If you're paying the same amount for supplies, inventory, and services for your business as you were in 2008, you're throwing your money away. Especially if you can offer cash on delivery or fast payment, you should be able to renegotiate some of your deals for less. Check out this NYT article by Paul Brown; it has some good ideas for negotiating prices down.

In particular, if there's a glut of vacant space in your area, your landlord may be willing to rethink your lease -- even if it's a long-term lease. If you can show your landlord that without a reduction in rent, your business isn't likely to survive, you might have luck -- no landlord wants to lose a tenant in this market. One way to negotiate is to ask for significantly lower rent for the next year, with a built-in increase when things return to normal.

For information, advice and strategies you need to negotiate with a landlord, see Negotiate the Best Lease for Your Business, by Janet Portman and Fred Steingold (Nolo).