Home > Options on budget cuts

Options on budget cuts

Supplier News

What are your options when budget cuts are imposed?

Plenty but it does depend to some extent on the circumstances.

Here is a few pointers

  • Spend only on activities that support your brand and generate measureable results
  • Postpone lower priority programmes to the next budget year
  • Outsource non-strategic functions at lower costs
  • Initiate monthly cashflow and accruals analyses to protect from nasty surprises
  • Re-negotiate supplier contracts re-align the staff complement to focus on key must do functions
  • Remix promotional spend to focus on higher response rate activities review sponsorships, donations and csr commitments investigate government grant possibilities for R&D and promotion
  • Re-negotiate alliance partners’  co-operative promotional programme terms
  • Develop freegoods programmes to leverage publicity to replace reduced media spend
  • Involve external agency team members to deliver more output lock-in or hedge cogs purchasing contracts 
  • Do nothing unless it saves money or makes money
  • Consider using lower cost interns from university graduate programmes for short-term projects
And importantly,  put up a proposal to senior management, which clearly identifies the liabilities surrounding the budget cuts and recommend  alternative plans.  

Newsletter sign-up

The latest products and news delivered to your inbox