The ordering of pens, note pads, stationery, printing can seem a minor expense. However, printing and stationery orders can end up costing SMEs a considerable sum of money. The cost of consumables some businesses go through still astounds - especially for trades and retail areas when it should not be a significant operating cost.
I think it is because a lot of these purchases are made in small quantities, that the expenditure doesn’t traditionally attract close cost control. Maybe it should!
It is an often overlooked area where, in most cases, significant savings can be achieved by:
- giving one person the responsibility of purchasing stationery, so that there is not an open slather of everyone in the business being able to purchase stationery, as they require.
- give one person the responsibility for ordering all printing requirements for the business as well as ensuring that all of the old printed material is used first. Many businesses waste thousands of dollars each year by throwing out stationery that they have deemed no longer suitable to use, when in many cases it could have been used for another few weeks or months, so as to use up the investment that has been made in the old stationery.
- lists should be prepared of items that are regularly used so that these can be ordered and obtained at one time, so getting the benefits of quantity discounts.
- regular orders should be placed on a frequent basis so as to ensure that stock is purchased at the best possible price and that it is available when staff wish to use it.
- it’s a good idea to establish a stock of stationery so as to avoid running out and having to buy at higher prices.
- the inventory of stationery should be kept at one location.
Keep an eye out for specials and clearance items you are going to need (don’t stock up on anything you won’t use just because it’s cheap). When placing orders, give some thought to the benefits of buying extra when your usual products are on sale.
I have to admit, I’m a bit of a stationery addict myself so it’s hard to keep a tight reign on myself at times. What’s the stationery situation like in your business? Do you have a system in place or do you rush to the local Newsagent as needed and pay for the convenience?
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
Christie has written 811 awesome articles for us at Alan Lewis Accountants – BLOG
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