There are exceptions, but it’s generally the case that all businesses need technology to operate efficiently and reach their full potential. And not only do they need it, but they need a lot of it, and that can add up to what amounts to a small fortune — in some cases, businesses spend around 7% of their revenue on IT-related costs.
Investing in technology is recommended because it helps to drive sales and build additional revenue, but that doesn’t mean that businesses should be OK spending as much money as possible on their IT needs. With the cost of running a business higher than ever, anything that keeps costs down should be welcome.
Happily, reducing tech-related expenses is usually possible thanks to the simple fact that this is an area in which many businesses overspend anyway. Being aware of how businesses overspend on technology and taking steps to address it, as detailed below, can help brands to significantly reduce their tech costs.
They get drawn to features they’ll never need
Many businesses end up buying machines that provide much more than they actually need. It can be tempting to buy an all-powerful laptop or computer, but if you’re only using it to conduct basic business tasks, then it’s not really necessary. You’re paying for power and features that you don’t actually need. It’s the equivalent of deciding you need to buy a vehicle to get around, and then buying a Ferrari when a standard Ford car would have done the job just fine. When making a purchase, think about what you genuinely need, and don’t let salespeople convince you otherwise.
They always buy branded products
There are ongoing tech costs that can’t be avoided. You’ll simply need to buy printer ink, new hard drives, computer mice, cables, and other accessories from time to time. How much you spend on those things will depend, in large part, on whether you purchase branded products or buy from a third-party supplier. In nearly all cases, it’ll make much more sense to buy third-party. Computer mice, printer cartridges, and other essentials from third-party suppliers work just as well as branded components, but are often 50% – 70% cheaper, resulting in savings that can add up to a small fortune over time. Before buying a branded product, check to see if there’s a more affordable off-brand option available — you’ll find that there nearly always is.
They never review their software subscriptions
Businesses can acquire a lot of software subscriptions over time, and if they’re never taking the time to audit those subscriptions, then they may end up spending more than necessary. Reviewing your monthly software expenses will allow you to discover if you’re paying for software that you no longer need or can reveal newer, more affordable options. You might have bought an expensive monthly subscription three years ago, but through an audit, you might just discover that there’s a new competitor that can provide the same services for a much cheaper price — or perhaps even for free.
