Individuals and families are not the only ones that have suffered in this economy.  Most businesses, big and small, have felt the pinch as well.  We all need to evaluate the way we do business to insure survival.  We need to be willing to change, to try new things, to think “outside the box”.

One of the easiest areas to evaluate is that of your suppliers.  It is very easy to settle into a routine, develop a good relationship with suppliers and trust that they are looking out for our best interest.  The fact of the matter is that those suppliers just simply increase prices for their regular customers by “X” percent periodically, while new customers are enticed with discounts, promotions, etc.   We see this happening in our personal lives all the time; satellite TV, cell phone service, bundling, etc.  It is up to us to keep everyone we do business with honest.  The longer you have done business with a vendor, the more important it is to check up on them.

Ok, now let’s look at one of your largest suppliers.   Find another supplier or two that can provide you with the same products.  Compare the prices of all the items that you purchase from them.  Speak with each of these new suppliers to find out what kind of deals they are willing to make to get your business.  Are these suppliers going to be able to save you money?  If so, you have a decision to make.  Either you switch to the new supplier or go back to your current supplier to negotiate new pricing based on the information you received from the prospective suppliers.  If you are receiving excellent service from your current supplier, it would be worthwhile trying to negotiate new pricing with them.  If the service is not what it could be, then making a switch to a new supplier would be recommended.  Remember, change can be a good thing.

Now it’s time to do the same exercise with the rest of your suppliers.  Many of your venders may be small in the grand scheme of things but evaluate each one anyway.  Saving a small amount of money with several vendors can add up.  This exercise actually can be a lot of fun, especially if you find one or two areas of your business that you can save money in.

Let me know how this worked for you.  Were you able to save money?  I sure hope so.

This is a touchy subject and one that may be better left alone, but. . .  I read an article last night about the mayor of Bloomington, Indiana trying to prevent chain stores from setting up shop on the square or near the campus of IU.

The Mayor’s point was that in order to keep the “feel” of the city, large chain stores should be kept out of those two areas.  The square and edge of campus have a small town feel, quaint and with character.

There are many small independent businesses in those areas that depend on the students for their livelihood.  So much so, that their struggle is making it through the summer and the month of December when the majority of the students are gone.  Other areas of the city do not seem to be as affected by the student population and there are many chain stores in those areas.

As I mentioned, this is a touchy subject.  The article I was reading was online and there were many comments for and against this restriction.  Both sides were very passionate about their point of view on this.  I can appreciate what both sides are feeling.  The organic business strategist in me says “sure, let them build where they want to.” The side of me that enjoys the small town feel says “no, don’t let them in those areas, it will change the feel of the city.”  I am glad I am not a city planner because making those decisions would be difficult.

What I don’t understand is why a chain store would want to be in those areas of town.  It seems to me that if the small independent businesses struggle through the summer months to survive, doesn’t it make sense that the chain stores in the same location would suffer the same?  In fact, the chain store would have a much more difficult time surviving due to much higher overhead.  A small independent store has the advantage during the slow months, of being able to run with just the owner and a small staff.

It does seem, however, that the chain store would add synergy to the area by attracting more customers.   As a result, the smaller stores would get more business.  It is my understanding, however, that the general population of Bloomington does not go to these areas because there is not enough parking.  If the city council needs to “flex their muscle”, maybe they should require that the large chain store create parking that would be shared by the community.  Handling the situation in this manner would be a win win situation.

What are your thoughts?