Are you paying the stupid tax?

//Are you paying the stupid tax?

Are you paying the stupid tax?

Australian, Dollar, Money, Currency

Have you ever paid the stupid tax? It’s possible you’ve paid it without even realising it. I certainly have. What is stupid tax? It’s the extra cost that we pay when we are too busy to do price comparisons. It’s the premium we pay when are in a rush or need something urgently. Sometimes we pay stupid tax because we don’t review our purchase orders for errors or accept that our current suppliers are providing their best price without asking for anything better. Business owners can easily pay too much because we’re distracted and too busy to stop and review our accounts.

·         If you’ve ever accepted the first quote you were offered without shopping around, you’ve paid stupid tax.

·         If you’ve ever signed up to a subscription service (like the gym!) and stopped using it, you’ve paid stupid tax.

·         If you have accepted accounts from regular suppliers without question for more than six months, you might be paying stupid tax.

Sometimes, businesses rely on customer complacency and benefit from the fact that clients are too time poor to research. If you’ve worked out that your current supplier is charging too much, speak to them about it. Let them know that you’ve found a better price elsewhere and ask if they can sharpen their price a little.

Truthfully, there is usually a supplier out there who is willing to go the extra mile to secure your business. Even if they can’t lower a charge, you may be able to access additional services for the same price. Ultimately, if companies want your business, they will fight for it. Tradies will be there on time to provide a reasonable quote. Suppliers will be upfront about pricing, and happy to communicate.

How to avoid the stupid tax?

Doing a little research can help save you a whole lot of money. These ideas can apply to one off purchases or services, but the big savings can be made through investigating your current regular purchases.

·         Review your current contracts and identify where costs are increasing,

·         Call at least three businesses for competitive quotes,

·         Take your quotes back to your supplier and challenge them about their cost offering, and

·         Don’t compromise on customer service. If they want your business, they will treat you well.

If you’re in business yourself, you know it’s a competitive environment. Don’t pay stupid tax, but also be fair in your negotiations – integrity goes both ways.

Deferred stupid tax

Be careful about paying deferred stupid tax, too. That’s when you choose the absolute cheapest supplier, regardless of product quality. When those parts wear out quickly, or you on-sell them and develop a reputation for low quality stock, or part failures cause additional damage, you will pay more than you ever saved.

Have you paid the stupid tax before? Head over to my Facebook page to share your experience and tips for avoiding paying extra when you don’t have to. See you there!

About Tanya and Pure Innovation

I know that small business owners are often working under pressure with too many balls in the air. I can work with you one on one to help to reduce your ‘stupid tax’ payments and create a plan to get you results. Contact me today to find out how I can support your business success.