Running a retail or e-commerce business is no walk in the park. Between keeping customers happy, outpacing competitors, and handling day-to-day operations, there's a ton on your plate. One area that often causes headaches is managing things like waste disposal, payment processing, uniforms and mats, telecom services, shipping, and facility supplies. While these might seem like minor details, they can add up to big costs and even bigger hassles.
In fact, according to a study by Deloitte, operational costs can consume up to 25% of a retailer's revenue. Let's dive into why these challenges crop up, highlight some data to show their impact, and see how a company called Schooley Mitchell can lend a hand.
Regulations and Sustainability Pressures
- Complex Rules: Dealing with waste isn't just about tossing stuff in the dumpster. There are numerous local and federal regulations to follow. The Environmental Protection Agency (EPA) can impose fines averaging $25,000 per day for non-compliance with waste regulations.
- Going Green: A Nielsen survey found that 81% of global consumers feel strongly that companies should help improve the environment. Implementing sustainable waste practices can increase costs by up to 20%, according to Waste Management Inc.
- Different Types of Waste: Retailers deal with various waste streams. For example, the U.S. generates approximately 14.5 million tons of plastic packaging waste annually, much of which comes from retail.
- Vendor Coordination: Managing multiple waste vendors can lead to inefficiencies. A survey by the National Retail Federation found that 65% of retailers struggle with waste vendor management.
How Schooley Mitchell Can Help
Schooley Mitchell specializes in cutting costs in areas like waste management. They can:
- Audit Your Services: On average, they find savings of 27% in waste management expenses for their clients.
- Negotiate Better Rates: With their industry expertise, they can negotiate contracts that save businesses thousands annually.
- Simplify Processes: They help streamline waste services, reducing the number of pickups and optimizing schedules.
2. Merchant Services Headaches
High Fees and Complexities
- Transaction Costs: Credit card processing fees typically range from 1.5% to 3.5% per transaction. For retailers, these fees can add up significantly. For example, a retailer with $1 million in annual credit card sales could pay up to $35,000 in processing fees.
- Hidden Charges: A study by The Strawhecker Group found that 43% of businesses are unaware of hidden fees in their merchant services agreements.
- Keeping Up with Payment Tech: The mobile payment market is growing at a rate of 33.8% annually, according to Grand View Research. Retailers need to invest in new technology to keep up.
- Security Concerns: Data breaches are costly. IBM's 2021 Cost of a Data Breach Report states that the average cost of a retail data breach is $3.27 million.
How Schooley Mitchell Can Help
- Reduce Fees: Schooley Mitchell clients save an average of 28% on merchant services fees.
- Simplify Billing: They clarify complex fee structures, helping businesses understand and control their costs.
- Enhance Security Compliance: They assist in ensuring compliance with PCI DSS standards, reducing the risk of costly breaches.
3. Uniforms and Mats Messes
Cost and Maintenance Issues
- Buy or Rent?: According to the Uniform Retailers Association, renting uniforms can cost 15-20% more over five years compared to purchasing.
- Wear and Tear: Frequent replacement due to poor quality can increase uniform costs by 30%, based on a study by the Textile Rental Services Association.
- Inventory Tracking: Retailers with high staff turnover rates (averaging 60% annually in retail, per the Bureau of Labor Statistics) struggle with managing uniform inventories.
- Cleaning Duties: Outsourcing cleaning can cost businesses an average of $5 per uniform per week, adding up over time.
How Schooley Mitchell Can Help
- Analyze Options: Help determine the most cost-effective approach, potentially saving up to 25% on uniform and mat expenses.
- Negotiate Contracts: Avoid hidden fees and lock in favorable terms with suppliers.
- Streamline Inventory: Implement systems to better manage uniform and mat inventories, reducing losses by up to 15%.
- Rapid Changes: Businesses are expected to increase their spending on telecom services by 4% annually, according to Gartner.
- Integration Issues: 57% of companies report challenges integrating new telecom technologies with existing systems (IDC Research).
- Complicated Bills: Telecom invoices are notoriously complex. An audit by Valicom found that 80% of telecom bills contain errors, leading to overcharges of 5-12%.
- Contract Challenges: Without expertise, businesses can end up paying 15% more than necessary, according to the Telecommunications Expense Management Industry Association (TEMIA).
How Schooley Mitchell Can Help
- Audit Bills: Identify and correct billing errors, often saving clients 20-35% on telecom expenses.
- Optimize Services: Ensure businesses are only paying for needed services.
- Negotiate Contracts: Secure better terms, avoiding costly long-term commitments.
- Fast and Free Expectations: Amazon Prime has set the bar high. 65% of consumers expect free shipping on orders under $50 (National Retail Federation).
- Last-Mile Delivery Costs: Last-mile delivery can account for 53% of total shipping costs (Capgemini Research Institute).
- Multiple Carriers: Managing different carriers can lead to inefficiencies. A survey by Pitney Bowes found that 56% of businesses struggle with multi-carrier management.
- International Shipping: Cross-border e-commerce is growing at 17% annually, but 70% of retailers find international shipping complex due to customs and regulations (DHL Express).
How Schooley Mitchell Can Help
- Analyze Shipping Costs: Identify savings opportunities, often reducing shipping expenses by 20%.
- Carrier Negotiations: Leverage relationships to secure better rates.
- Streamline Logistics: Offer strategies to improve efficiency, potentially reducing delivery times by 10%.
6. Facility Supplies Frustrations
- Varied Needs: Businesses spend an average of $200,000 annually on facility supplies (Grainger Report).
- Supply Chain Disruptions: 74% of businesses experienced supply chain disruptions in 2020 due to COVID-19 (Institute for Supply Management).
- Missing Out on Bulk Discounts: Small to medium retailers often pay 7-10% more for supplies than larger companies (National Association of Wholesaler-Distributors).
- Too Many Vendors: Managing multiple suppliers can increase administrative costs by 18% (Procurement Leaders).
How Schooley Mitchell Can Help
- Consolidate Suppliers: Reduce the number of vendors, saving time and money.
- Negotiate Better Deals: Achieve bulk pricing savings, even for smaller businesses.
- Improve Inventory Management: Implement strategies to reduce overstock and stockouts, potentially saving 15% on supply costs.
Why These Challenges Happen
- Focus Elsewhere: You're busy focusing on sales and customers, so operational details sometimes get less attention.
- Lack of Expertise: Not every business has in-house experts in areas like waste management or telecom services.
- Fragmented Systems: Using different systems for each area makes it hard to see the big picture and spot inefficiencies.
How Schooley Mitchell Makes a Difference
By partnering with Schooley Mitchell, you get:
- Expertise Without the Overhead: Access to specialists without having to hire new full-time staff.
- Cost Savings: They aim to find significant savings across various expense categories, often between 20-40%.
- No Upfront Costs: They work on a contingency basis—they only get paid when they save you money.
Running a retail or e-commerce business comes with enough challenges. Dealing with waste management, merchant services, uniforms and mats, telecom, shipping, and facility supplies shouldn't add to your stress. Companies like Schooley Mitchell are here to help you navigate these complexities, save money, and let you focus on what you do best: serving your customers.
By tackling these operational headaches, you can improve your bottom line and gain a competitive edge. With Schooley Mitchell's help, businesses have saved over $650 million collectively, demonstrating their effectiveness in cost reduction.
Schooley Mitchell is North America's largest independent cost reduction consulting firm, with over 28,000 clients and $650 million in documented savings. They help businesses reduce expenses in areas like waste management, merchant services, telecom, shipping, and more. With a network of experienced consultants, they work to save their clients’ money—all without any upfront fees. They get paid only when you save, making it a risk-free partnership.
Data Entry and Lead Generation expert at SQUARE GROUP
2 个月Useful tips