As I tell every client, if you haven’t already begun, now is the perfect time to scrutinize every single expense your business incurs.
Start with the assumption that nothing is carved in stone, even if you have made a legal commitment. And this applies to your dealings with companies of all sizes, as well as your employees.
These are unusual times and so there’s no reason to be shy. Trust me, you won’t be the only one asking for consideration. And don’t be surprised when you’re approached by people who pay you. Every savvy businessperson should be doing this.
Consider using a simple approach, such as, “Needless to say, my business has been impacted by the current pandemic and therefore I could use your help in terms of our commitment to your company.”
The above will open a dialogue that could very well lead to lower pricing. But remember, in any negotiation, there’s more than just price. Concessions can also involve terms, upgrades to a product, delivery, etc.
Keep in mind that most of your vendors are being impacted as well. So yes, while you have pressure on yourself, they do too. That’s important to keep in mind. For example, they may have completely lost some clients. When you contact them, they may be fearing the worse. When you explain your situation in a non-confrontational way, while they may not say it, they’ll probably be relieved and welcome your attempts to continue doing business, even if they need to make some concessions.
I understand that getting started in this process can often be difficult. I’m here to help you jump-start your efforts.