How Businesses Are Reducing The Cost Of Operation and Making More Money
Sunday, November 17, 2013, 1:00 AM | Leave Comment
Saving money and making it can be synonymous in business. However, many companies isolate the two. One company that does not is a New York-based factory called Kleer-Fax, Inc., a paper products manufacturer with lines that include legal index dividers (Exhibits A, B, C, etc.) and expandable file folders.
While many paper companies are closing down, Kleer-Fax is doing very well. Part of the reason is because they don’t waste money, proving Benjamin Franklin’s old adage that “a dollar saved truly can be a dollar earned.”
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Using payroll Services
For some companies, using a payroll service like adp.com isn’t sensible, such as when there are very few employees, but when your business exceeds 100 team members, it’s time to automate. This includes a system of clocking in and offering direct deposit.
The direct deposit option costs a few extra dollars, but what does it cost for employees to go to the bank on payday compared to them knowing the money is there the moment they wake up?
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Check and Double Check
Internal controls are very important. For a manufacturer like the one profiled here, mistakes are costly. Kleer-Fax products are sold in Staples stores. For those who don’t know, billion dollar companies use their leverage against wholesalers by asserting penalties for cracked wooden pallets that boxes of paper are delivered upon and mistakes in orders received.
The retailer’s extra profit center – gouging its suppliers – can be a tremendous expense to small and medium-sized companies like this one, and the costs can be tens of thousands of dollars. By instituting a system of checks, this cost can be reduced, thereby increasing profits.
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Bringing in High Level Talent Instead of Outsourcing
While outsourcing makes sense in many cases, such as payroll, some jobs need to be done in-house. Kleer-Fax has many sales professionals on the road, getting its items into law offices and other locations.
However, among its products are custom items that are promoted by its salaried team members. Additionally, the company’s website is handled from the inside. These jobs are done by people who have a vested interest in the company, and they are rewarded for it.
By streamlining payroll with adp.com, cutting unnecessary costs, instituting internal controls, and having people with a vested interest bring products to market, Kleer-Fax has been surviving in an industry that was a leader in the past, is surviving in the present, and only has room for a few players in the future.
It’s very likely that Kleer-Fax is a part of that future.
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