– inventory can be viewed as a liability until it is sold. Con- versely, sometimes you just have to make a purchase below your free freight level, and that is where the second element kicks in - your own shipping account. An easy way to get your own account with a discounted rate is through the DEMA shipping program with Siriani Shipping Solutions. This program will set you up with a UPS account that gives you a discount on the normal UPS rates. To take full advantage of this program, you will need to ensure that your suppliers use your shipping account when sending products. RETAILING continued
If your business bank is like mine, they have a detailed, fine print summary of all the potential fees, but you will also need to be careful about any fees that aren’t disclosed. For example, I wanted to transfer money from one bank to another online and, when I got to the end, they disclosed that there would be a fee involved. Keep an eye out for all these various bank fees. Try to eliminate them and see how much money you’ll save. Credit Card Processing Fees: Credit card processing fees have a significant impact on small businesses. There has been some legislative focus on this recently, but it is extremely un-
There are some suppliers who will not use your account, so you will need to check with them. Additionally, for cer- tain international vendors, you may find it more cost effective and efficient to use their shipping program. Re- member, if you use the vendor's pro- gram, you are probably paying full price with a potential markup. Avoiding Bank Fees : Unless you're a banker, you're probably, like me, don’t like bank fees. These fees are like charging you for the privilege of using your money. Wire transfer fees vary - some banks have a flat inbound fee along with a different fee for domestic or international outbound wire trans- fers. These fees can range from $20 to $60 per transaction. If you routinely do wire transfers, take a few minutes to look at how much you are spending and, if possible, look for other solu- tions to move money. The best sce- nario is to completely eliminate wire transfer fees from your expense, if practical.
likely that they will be eliminated. Therefore, it is up to each business to take steps to minimize the impact. You must first understand what you are being charged in processing fees and be diligent in reviewing your monthly statement. Sometimes the only notice of a rate increase is on your statement. Also, you need to be cognizant of per- swipe fees, card-not-present costs, and any variable rates based on the specific type of card. Since we cannot eliminate the credit card processing fees, there are several other areas to investigate. First, if you have a point-of-sale system, reach out to them to see if they have lower cost options. DEMA also has an affiliate program with Desormais Management that offers discounted rates on these fees, and can be leveraged if integrated with your point-of-sale solution. If your point-of-sale provider or DEMA’s pro- gram is not an option, don’t be afraid to call up your credit card processor and negotiate for a lower rate. Get a low per-swipe fee. You will need to decide if you opt for a fixed percentage across all cards or vary the rate across various card types. A small difference in your fixed per- centage rate can have a big impact. As a case study, I was able to negotiate our fixed rate for all cards from 3.22% to
Here are four essential tips for managing expenses & improving cash flow in a business: 1) Controlling Shipping Costs • Leverage Free Shipping Programs – Un- derstand supplier free shipping thresholds and time purchases accordingly. • Enroll in discount shipping programs like DEMA’s Siriani Shipping Solutions. • Compare Vendor Shipping Rates – Some vendors mark up shipping fees; weigh the cost benefits of using their service versus your own. 2) Reducing Bank Fees • Avoid Wire Transfer Fees – Evaluate how much you're paying and seek alternative methods to move money. • Eliminate Foreign Exchange Fees – Use credit cards that do not charge extra fees for international purchases. • Watch for Hidden Bank Fees – Read fine print on banking policies and negotiate better terms. 3) Lowering Credit Card Processing Fees • Monitor and Negotiate Processing Rates – Regularly review statements for fee in- creases and renegotiate rates. • Explore Lower-Cost Processing Options – Consider alternatives like DEMA’s affili- ate program with Desormais Manage- ment. • Compare Flat vs. Variable Rates – Ana- lyze whether a fixed percentage across all cards or varying rates based on card type is more cost-effective. 4) Maximizing Interest on Business Accounts • Negotiate Higher Interest Rates – Re- quest better returns on savings accounts or look into money market funds. • Consider Short-Term Investment Options – Utilize certificates of deposit (CDs) for higher returns. • Switch Banks if Necessary – If your cur- rent bank won’t offer competitive rates, move funds to an institution with better terms.
Another often overlooked bank fee can be tied to your bank issued credit card where you are charged foreign ex- change fees. These can add up, espe- cially if you are making large purchases internationally, and your rate can be up to 1.1% of the purchase. If your credit card is charging foreign exchange fees, you should seriously consider a card that does not increase your cost when making international purchases.
2.92%. That doesn’t seem like a lot, but for every $100K of credit card sales, you save $300. Additionally, we also fixed our
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