I Follow Dave Ramsey’s Frugal Habits and It Saves My Business Up to $192,000 Per Year
For many entrepreneurs, Dave Ramsey’s famous financial principles are changing lives on a personal level. But they can also really transform a company’s financial image. Just ask Brian Kroeker, president of Little Rock Printing.
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Kroeker is a devoted Ramsey fan who has implemented the financial guru’s cost-saving strategies throughout his commercial printing operation. The results? An incredible monthly savings of $8,000 to $16,000. That’s up to $192,000 a year your company pockets thanks to some wise, frugal habits.
So what are the specific economic habits taken from Ramsey’s playbook that allow Little Rock Printing to save so much? Kroeker looked at his three biggest money savers.
See also Ramsey’s 100 Money-Saving Tips.
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Always negotiate everything
“Monthly, we save between $8,000 and $16,000, largely thanks to a few key practices,” Kroeker said. “We’re good at negotiating with suppliers – Dave always says, ‘If you don’t order, you don’t save!’”
He’s exactly right. Securing discounts through bold negotiations is something Ramsey can’t emphasize enough, whether for personal or business expenses. And Kroeker reaped the rewards.
“It’s true: securing even a 5% discount on our major expenses makes a real difference,” he said, “especially [because] In our area of business, we always need supplies to keep our printing business running year-round.”
Little Rock Printing’s costs for industrial equipment, materials and services are high. So reducing these numbers by 5% translates into tens of thousands of annual savings simply by asking suppliers for better deals. As Ramsey says, it never hurts to ask.
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Buy quality cheap replacements once
Another brilliant frugal habit of Ramsey’s that Kroeker swears by? Buy quality items that will last rather than cheap disposable items.
“We also don’t hesitate to pay more upfront for quality, long-lasting equipment,” Kroeker said. “It’s an approach that pays off in the long run by reducing our need for costly replacements and repairs, which can really harm our operation with long periods of downtime.”
The printing business requires heavy industrial machines running at full speed daily. While replacing these machines every few years with cheaper models may save you money up front, it ends up costing you a lot more in the long run. Kroeker prefers to invest more in equipment built to last 10 to 15 years with minimal maintenance and repairs needed.
Be generic to save a lot
Ramsey doesn’t believe in paying extra for name brands; Kroeker takes this frugal philosophy seriously for Little Rock Printing as well.
“And when it comes to materials, we often choose generic names over brands whenever the quality matches,” he said. “Because why pay more for a label when the product is the same?”
By purchasing generic versions of the materials he needs, Kroeker ensures that he and his team get the same quality product or service without paying the premium price.
Sustained profitability and growth
Collectively, Kroeker’s operating habits stemming from Ramsey’s teachings allow Little Rock Printing to maintain a solid financial foundation.
“These strategies have truly improved our financial health and allowed us to expand steadily without compromising quality or financial stability,” Kroeker said.
Instead of profits leaking through wasteful spending, exorbitant brand taxes, and a throwaway mentality, Little Rock Printing maximizes every dollar. The money saved is invested back into growing your capabilities, service offerings and team.
While many commercial printers struggle with ultra-thin margins, Ramsey’s basic financial principles have been a cheat code for this Arkansas company’s sustained profitability and smart growth. When frugal habits save you up to $192,000 a year, that’s money you can invest in strengthening your operation rather than watching it burn needlessly.
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This article originally appeared on GOBankingRates.com: I Follow Dave Ramsey’s Frugal Habits and It Saves My Business Up to $192K a Year
