1. Say goodbye to next-day delivery: One of the major cuts involves the end of overnight delivery for priority packages. That means companies that guarantee next-day delivery via the USPS will need to adjust their delivery options. It also means companies that need to get something out to a vendor, prospect or client ASAP will likely have to go with FedEx or UPS.
2. The speed of standard delivery: Because the USPS is eliminating 487 mail-processing centers and 28,000 jobs, standard letters and other parcels are expected to be delivered in 2-4 days (as opposed to the 1-3 days most people have come to expect).
3. Mailing costs are about to increase: The most direct way to increase revenue is to either save on costs or increase profits. The recent cuts are a major cost-cutting measure. But you can expect postage rates and other mail-related costs to increase, as the USPS continues to cope with the loss of nearly a third of its business over the past three years.

Source: “Next-Day Mail Faces Postal Service Cuts,” by Steven Greenhouse, New York Times, 12/5/11.

Here’s a chance to compare your health costs against those of employers who took part in two nationwide surveys, and to see how some employers are saving money.

A survey of 1,600 employers by consultant Mercer shows:

• Employees’ share of healthcare benefit costs is expected to increase 5.4% next year. That’s the smallest rise in 15 years, but higher than the 3.9% rate of inflation or overall salary increases. The past two years have each seen increases of about 9%.
• The favorite cost-cutting measure by employers are raising deductibles, increasing paycheck contributions and moving employees to lower-cost health plans. One-third of survey respondents said they plan to raise deductibles or co-payments next year.
• The median in-network PPO deductible for an individual is $1,000 among small employers and $500 for large employers.
• This year, about 51% of large employers have consumer-directed health plans, or CDHPs, which high-deductible plans that offer tax-saving add-ons such as health saving accounts. They are also a lot less expensive than other plans. Next year, 58% of large employers plan to offer a CDHP.

A separate survey of 2,000 employers by the Kaiser Family Foundation looked at costs for 2011. The highlights of that survey:

• Premiums for family coverage rose an average of 9%, to an average of $15,703, and
• That compares with an average increase of 3% in the same survey in 2010.

Note: The Mercer survey in 2010 predicted a premium increase of 6.4% in 2011 — far less than what showed up in the Kaiser survey.

Related story: Court clears you to go this far to cut healthcare costs

Does it drive you crazy when employees book air travel early, only to watch the rates plummet as the date of departure nears? In the end, the company is left footing the exorbitant bill for actually booking its travel weeks – or even months – in advance.

Fear not. The good people over at AirfareWatchdog have compiled a handy list that breaks down each airline’s refund policy (for ticket prices that are later reduced ).

Believe it or not, some of the most well-known airlines have full or partial refund policies that could potentially save your department thousands of dollars a year. Notable examples:

• American Airlines will issue a “rollover credit” good for future travel, in the form of a travel voucher.
• Continental and Delta will offer a refund in the form of a travel voucher.
• JetBlue will offer you credit for the difference, but it doesn’t publicize that policy.
• Southwest will rebook your fare and credit you or the company for the difference to your account.

For a complete A-Z list of refund policies that you can print out or forward, click here.

The U.S. is nearing the “crisis” level of July 2008, when gas prices peaked at $4.11 a gallon. Yet, there doesn’t seem to be the same level of mass concern regarding gas prices, at least not yet. Whether that has to do with consumer optimism, or the fact that we’ve been here once before, rising gas prices now have the potential to impact productivity, morale and expenses.

The average gas price right now is $3.77 a gallon (according to the Oil Price Information Service), with most analysts predicting it will once again topple the $4 mark at some point during the summer.

Assuming that’s true, upper management may need to consider the following measures:

• temporarily adjusting the mileage rate to take some of the burden off of employees who do a great deal of traveling for the company
• monitoring and/or capping the amount of gas mileage employees can expense on a regular basis
• offering gas cards as regular incentives
• developing car pool options for employees who live in the same area
• suggesting sales reps schedule meetings in one specific region each day of the week, to cut down on back and forth travel, and/or
• allowing employees to work from home at least one day a week to ease the burden of gas expenses.

If your company has a fleet of corporate vehicles, it may be helpful to consider how fuel efficient they are, and whether the company could be saving a significant amount on costs by going with more fuel efficient models in the future.

Source: “Gas Prices Rise, and Economists Seek Tipping Point,” by Christine Hauser, New York Times, 4/11/11.

Here’s the set up: Many firms count all IT costs as general and administrative (G&A) expenses, say the folks at Forrester Research who keep an eye on such things.

The lack of true IT cost transparency by budgeting this way can put  your organization at a disadvantage on two fronts:

1. Your  financial statements will be distorted. Your bottom line remains the same, but your G&A will be overestimated while your cost of goods sold (COGS) will be understanted. That may mistakently make people think you have too much overhead or that products are more profitable than they actually are.
2. Other top execs may make bad decisions. If they rely on faulty data, execs may make the wrong calls on where to direct resources.

Best bet: Encourage IT to break down its costs as completely and accurately as possible.

1. Zero in on the ‘true objection’

Most objections boil down to something the salesperson has heard a number of times before (e.g., price, timing, have better offer, no compelling reason to make a change, etc.). But beneath the surface there’s often a more specific reason why the prospect isn’t agreeing to move forward.

It can be helpful to go back to the initial sales call and recall why the prospect agreed to meet in the first place. Were they unhappy with their current supplier? Were they interested in a specific service you offered? Did they feel like they could receive a better return on investment?

In many cases the answers prospects provide early on are connected to their subsequent objection. Thorough salespeople look back at their notes from the initial sales call, so they can determine whether their value proposition provided enough urgency for the prospect to agree to meet.

2. Be a resource first, salesperson second

Today’s salesperson is expected to partner with prospects, acting as a consultant whose solutions can help generate additional profits.

That’s why a lot of successful salespeople become students of the game – joining industry associations, attending seminars and subscribing to trade journals.

That way they’re in a much better position to negotiate a win-win outcome when prospects raise a red flag. They’re also more in tune with industry terms and emerging trends, which boosts their credibility and helps build additional trust with prospects. That puts them in a better position to not only deal with objections, but also anticipate and (in some situations) avoid them altogether.

3. Sell measurable results

In most markets, there are several products and services that offer prospects similar benefits. A salesperson who can provide clear evidence of the long-term advantages of doing business with him or her is much more likely to win a prospect’s business.

That could mean showing how a product/service can increase productivity, decrease labor costs, lower overhead, increase profits or help the prospect identify new revenue streams.

Some salespeople keep a file of customer testimonials that explain how using their products and services helped grow other businesses.

Prospects are much more inclined to be swayed by evidence from their peers. They may be additionally persuaded by the notion that top competitors are saving costs or generating revenue by using a resource they haven’t.

Based in part on “Pulling Out of a Sales Slump,” by Jim Kasper, Salesvantage.com

Airlines have also cut their capacity seating 12-15%, which means booking in advance is an absolute must, according to Tom Parsons of Bestfares.com.

Here are some tips Parsons recently provided to CNN.com for helping managers and employees travel on a company-friendly budget:

• Book single seats rather than booking in groups. When you book several seats at once on most online sites, the group rate is often more expensive than the single-seat rate (as the site automatically begins looking for clusters of seats located next to one another).
• Avoid peak travel times/days. Try to book your flights on Tuesdays or Wednesdays (or during red-eye hours), when peak-travel surcharges don’t apply.
• Book the first flight out in the AM. This is where the best rates are hiding, and – in many cases – it’s where the least-crowded flights are as well.

Can you think of any other cost-efficient travel tips? Feel free to share them in the comments section below.
Source: “Holiday travel 2010,” by Stacie Van Dyke, CNN, 9/20/10.

The cost of paying back debts has decreased for years, but now, as the national debt rises, inflation is sure to come with it, according to a recent New York Times piece.

Economists point to the housing market as the first place where increased interest rates will begin to have an impact. This is particularly disparaging news for prospective homeowners, as a 1% increase in the interest rate could increase the total cost of the home by nearly 20% over the life of the loan.

Credit cards are another area where consumers will likely see a rise in interest rates. The average interest rate on credit cards recently reached its highest rate in 10 years (14.3%), according to the Fed. That jump represents an average additional cost of $200 in credit interest per household over the past year alone. And experts predict that number will likely rise even higher.

Car loans are also on the rise. The average interest rate on a car loan has jumped 1.3% over the past three months alone.

All this is in addition to national debt issues that should cause additional inflation in the months and years to come, as companies and the government, continues to dig itself out of this mess.

Do you think there’s any way to avoid these interest hikes? What should the Fed do in the months to come to avoid another credit crisis?

Feel free to share your thoughts in the comments section below.

Source: “Interest Rates Have Nowhere to Go but Up,” by Nelson Schwartz, New York Times, 4/10/10.

1. Cap their minutes: Much like gas and meals, there needs to be consequences in place to keep people from taking advantage of the company’s expense policy. One suggestion: Set a limit on how many minutes salespeople can bill each month. Just be sure to provide them with a reasonable amount of time to conduct business.
2. See if you’re eligible for a family/business plan: One of the major reasons cell phone costs run so high is that salespeople buy their own models from different carriers — and that means different plans, charges, etc. Simplify matters by restructuring the department’s cell plan. Check with all the major carriers to see what type of group plan/discount you can get by having all your salespeople use the same network. A lot of cell phone companies don’t charge or deduct minutes for calls made to others who are on the same network. That means salespeople can contact you, each other or anyone else without eating up minutes.  Bonus: The plan can be set up so the bills are sent directly to you, which will help deter excessive personal use.
3. Have salespeople hand in a bill rather than a receipt: This isn’t a policy you want to enforce heavily, as it may cause salespeople to feel like you’re micromanaging — or prying into their affairs. But if you have one or two reps who continually go over their limit, let them know you’ll only sign off on their bills if you can see where all their charges are coming from. Chances are, if the bill is unusually high the salesperson is either charging the company for personal use, or he/she needs an updated cell phone plan.
4. Consider unlimited text plans: Almost everyone is texting these days. In many cases, salespeople can avoid short calls (to confirm an appointment, answer a quick question, etc.) by simply sending a text. Most unlimited text plans are inexpensive, and they can save salespeople — and the company — a significant amount.
5. Monitor online fees: Some salespeople need to use their cell phone’s Web service. If your company’s getting clobbered by online cell phone fees, let salespeople know you’re monitoring those fees. A lot of salespeople like to have the most up-to-date cell phone models, which may carry significant airtime fees and other expenses along with them. Every six months or so, compare past cell phone expenses to current ones to see if the costs are higher. If they are, zero in on where the extra expenses are coming from so you can determine whether they’re necessary or not.

Can you think of any other tips we haven’t mentioned? How do you manage cell phone expenses?

We’d love to read what you think in the comments section below.

Based in part on “8 ways to cut your cell phone bill,” by Dory Devlin, Shine, 2/8/10