How To Reduce Overhead Costs In Your Retail Business
April 23, 2018
It seems that every month another well-established brand disappears from the high street. In a period rife with challenging economic factors, the risk of liquidation looms over many business owners. And it’s not just the small businesses that are at risk. A few notable heavyweights have fallen by the wayside.
Toys-R-Us and Maplins are the latest well-known brands in high profile liquidation cases. Both have been trading for a substantial amount of time. Unfortunately, multi-sited businesses have had to endure a substantial increase in fixed cost, coupled with in some cases a structural change in retail spending for some time now. Since the UK market place started to lose retail giants like Woolworths, American Apparel and BHS, media coverage of big businesses going under is now an all too common occurrence.
Witnessing hallmark brands crumble in a very public way is both sad and daunting for other businesses facing the same challenges.
Challenging factors for retail businesses
A volatile mix of economic factors is to blame for many businesses struggling to turn a profit. An uncertain economic future in the UK (largely down to diminishing consumer confidence with Brexit firmly in the public consciousness) and increasing overhead costs is making survival much more difficult.
Some common economic issues that are currently squeezing business owners include: a Brexit-hit pound, a consumer base increasingly turning to online outlets such as Amazon and rising high street and retail park rental prices. With increased business rates and the rollout of the national living wage coming over the next couple of years, it will make conditions even harder for companies to succeed in an ever-competitive marketplace.
How can a retail business reduce its overhead costs?
If you have been tasked with finding ways to reduce costs in your business, overhead expenses management should be a priority. Overhead costs can include the following:
* Accounting or service fees
* Site rent
Many companies aim to reduce their overhead costs during periods of recession in an attempt to guard against unnecessary spending and loss. This isn’t an effective long-term strategy. Managing overhead costs proactively is a much more sustainable approach, rather than reacting to a problem that has arisen.
Cost reduction opportunities
In order to be proactive around overheads, businesses should consider healthy and sustainable methods of cost cutting, exploring several areas of saving. This can be tricky, especially in today’s challenging retail environment.
One saving opportunity that can (and should) be investigated is around utilities. If you have a business with multiple sites, you will know that energy costs can fluctuate and mount up, especially if you are not actively keeping track of changes in the energy market and site by site consumption. Scrutinising bills and usage data can sometimes be neglected in the everyday running of a business. Let’s face it, managing utilities expenses can take up a lot of time, time that you might not have.
Finding someone that can manage energy across your estate, whilst taking care of cost and consumption reductions might be the answer you’re looking for.
Retail energy consultancy
Ignite Energy offer total energy saving solutions for large retail businesses with multiple sites. This covers everything from improved supply and billing practices through to the implementation of estate-wide energy efficiency schemes.
We aim to reduce our client’s energy cost and consumption by up to 40%.
Our experience and expertise in retail allows us to identify where energy can be saved and reduce your business energy costs quickly and effectively. Contact us today to see how you could reduce your business energy costs.
Here’s a breakdown of some of our key retail energy services that could save you money.
Energy Bill Validation
It is crucial for large businesses to check and validate energy bills constantly to ensure that they are only paying for energy they have used. Our team check energy bills against actual consumption, enabling us to correct any errors found as quickly as possible.
We have recovered millions of pounds in aggregate for our customers through detection and error resolution.
Energy Data Management
Energy data management is key to an effective energy efficiency strategy. Ignite Energy ensure that your business has the necessary infrastructure in place to collect energy consumption data. We then provide a number of tools including customised reporting, exception alerts and access to site-by-site profile data to identify wastage and improve energy efficiency across your business.
Energy Data Analysis
Ignite provide energy data analysis and reporting to show you how your estate is consuming energy. We provide bespoke reports that can identify areas of wastage, best and worst performing sites, and make sure that sites are sticking to budget. Combined with exception reporting to highlight efficiency issues as quickly as possible, our energy use data analysis methods give you the power to accurately monitor and control your energy consumption.
Business Energy Savings
Ignite Energy develop, trial and implement energy demand reduction projects using the latest and best technology available. We have a strong track record of developing and implementing projects that lead to fantastic savings for our clients.
Some of the innovative methods we have helped businesses reduce their utility costs are:
· Lighting upgrades to more energy efficient options
· BMS (large or small scale) controls installation, optimisation and support
· Plant efficiency measures
· Plant / system upgrades and technology changes
· Local space controls and sensors
· Time of day / peak cost avoidance measures
Retail Energy Management at Ignite Energy
Ignite Energy specialise in large business energy management. With a proven track record of delivering fantastic savings through our retail energy management services, Ignite Energy are a perfect choice for any business looking to reduce overhead costs. With innovation, expertise and transparency at the core of our business, we guarantee your organisation will benefit from working with us.
If you would like to find out more about what we can do for you, please contact us here or call us on 0333 023 2222.