Managing a business today and leading it to profitability is in many ways more difficult than ever. No matter what industry your company is in, you have increased stress, because of increased competition. You no longer have to be concerned about the competitor down the street, across town or in a city near you, you also have to be concerned about a company on the other side of the world where labor is cheaper, and there are less government restrictions
Because of the increased competition, mostly brought on by the internet and advanced worldwide supply chains, companies have to focus more than ever on ways to increase their chances at financial success. This means that in addition to selling more of their products and services they also need to find ways to cut expenses.
Cutting a business’ costs, are a second way for a company to make more profits, but it is not always easy to do. A business must make cuts that do not interfere with productivity and efficiency at the company. There is a key area where most companies overlook, that can save them money each month. It is their electrical appliances.
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Understand What Appliances Really Add to You Electricity Bills
One area of cost overruns that sometimes gets overlooked is a company’s electricity costs. Companies can sometimes see bills that come consistently every month and feel as if the amount owed is simply the cost of doing business. In some cases this is true, but when it comes to the energy bill, there are definitely things that should be focused on with it. First, you should understand what appliances cost your business the most each month in electricity costs. Most people would correctly guess that it is your HVAC or AC unit, but they would be hard pressed to tell you what other appliances are high on the list. Understanding which appliances are electricity hogs can help you to save lots of money each month.
Your HVAC is Your Biggest Electricity Consumer
You should start with your HVAC because it is likely up to 50% of your electricity costs. If you have an old HVAC unit, that requires service often, you are probably spending way too much money every month for it. Older HVAC units are less efficient and require more electricity to put out the same amount of cooling or heat. Replacing a unit might seem like a large expense, however these costs can be made up quickly in electricity bills that are 15% less. This also helps your company go green.
Look for More Culprits
Examine the list of appliances that use the most electricity and you will find ways that you can change their use at your business. Business computers are great examples. Many companies have dozens of computers that are left on throughout the day and overnight. Some companies believe that leaving computers on keeps them operating effectively longer. This is the myth that only causes a company to spend unnecessary money on electricity. Computers should be turned off every night and when they are not in use for extended periods of time. Check around your office and see what other appliances might be costing you too much in electricity bills.
Pay attention to these and other costs that your company incur regularly. If you are diligent, you’ll discover that there are many ways for you to save money, and increase your bottom line.