The same goes for retailers. When inventory costs rise and sales stagnate, we begin to look for expenses we can reduce or eliminate. After examining the books, an excellent way to determine areas for cut backs is to solicit input from staff. The store meeting is an excellent venue for offering employees incentives for submitting cost-cutting ideas.
Of course one of the largest expenses a retailer may have is payroll. I suggest kicking off the meeting with honesty. Let the staff know that times are slow and we all have to tighten our belts. This means hours may be cut and people may be let go.
Ask the employees what they feel is the biggest money drain. Bring a copy of the budget to the meeting and let them know the reality of certain expenses. Maybe they don't realize the shop is paying $2500 per month in utilities.
If you've noticed particular areas in need of reduction, now is the time to bring these issues up and offer a solution. For example, if a cashier is frequently placing only one or two small items in a bag, here's where you can suggest they ask the customer if they really need the bag or not.
Be sure to take notes of all areas they feel the store can cut back. Implementing as many suggestions as possible will not only help the store's bottom-line, but will also show employees you value their ideas.
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