Reducing Operational Costs Can Improve Profitability
Little expenses can take a big chunk out of your bottom line. Likewise, making small reductions in daily costs can total significant savings at the year’s end. By identifying and instituting these small reductions, it is possible for shopping center managers and owners to greatly improve profitability. Shopping center managers looking to improve profitability should consider these operating areas and the opportunity they present to realize savings in your building’s overall expenditures.
5 Smart Ways to Trim Shopping Center Costs
Schedule to Win
Outsourced services, like security and maintenance, eat into the operating budget. Walkthrough the center at different times each day for a week to research the effectiveness of these services. Watch for over or under-scheduling during each period and adjust accordingly. Are workers performing unnecessary tasks or failing to do them at appropriate times? Make notes for contract renewal time.
Adopt Technology to Erase Paper Costs
Nobody appreciates the paper shuffle. Loose flyers and coupons annoy shoppers and end up floating around the stores and lobby spaces. Use technology and social media to promote shopping center events, retailer coupons, and other important shopping news. Enable Wi-Fi in your building so customers can access promotions on their smartphones while they shop.
Trim Trash Waste
Evaluating your garbage collection makes economic sense since costs to remove and dispose of waste keep spiraling upward. If you have regularly scheduled days for trash pickup, you can pare costs by waiting until the receptacle is full to call for disposal. Consider a professional waste audit for suggestions on tweaking your trash removal policies.
Control Your Center’s Energy Appetite
When is the last time the cost of energy went down? Analyze your utility and energy bills each month to find ways to save. Think about automatic temperature setbacks, upgrading your HVAC equipment, and converting your lighting to high-energy LED bulbs. If you are not sure how to find ways to save on energy costs, consider contacting an Energy Star-approved contractor.
Polish Cleaning Practices
Few things impact the success of a shopping center more than cleanliness. Providing a pleasant, safe environment for your guests is a necessity, but cleaning supplies, solutions, and equipment add to expenses. Pre-measured packets and dispensers that eject an automatic amount help control usage. Be sure to compare labor costs between day porters, after-hours cleaning personnel, and off-peak day hours employees.
Now that you’ve read 5 smart ways to trim shopping center costs, check out How Property Managers Can Use Facebook.
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