Cutting business costs with group discounts, coupons, promotional codes, and more during a recession

Economists and political scientists are predicting a recession for 2008. Whether the recession has already begun, or is just around the corner is a topic hotly debated. However, one thing is for certain: healthcare and gasoline prices are steadily on the rise. Businesses are feeling the pinch, since gasoline is needed for travel, shipping, and commerce – and healthcare is necessary to ensure a workforce ready for duty. How can a business cut these costs without sacrificing the well-being of its workforce or the quality of its business?

Use promotional codes and discount coupons for travel and shipping

As fuel costs soar to $3.50 per gallon or higher, and oil futures remain steady at well over $100 a barrel, the costs of commerce and travel will remain high. Many rental car companies and shipping businesses are raising their prices accordingly to offset the costs of fuel. And, in many cities and towns around the country, the cost of renting a car inevitably includes an excise tax, or a levy used to raise funds for unrelated services like highway maintenance or public transportation.

Here are some tips for cutting the costs of shipping and travel:

-Get a business discount membership with a car rental company or an airline. These programs are often specifically designed for “frequent travelers” or “frequent fliers,” and most offer discount coupons or promotional codes redeemable for discounted car rentals or business-class flights.

-Shop for fuel savings. Some retail stores and grocery chains offer promotional coupons or discount codes for gasoline purchases. If your employees travel frequently during the average workday (journalists and sales staff, for example, might make many automobile trips each day), discount coupons and codes can take the edge off of company-funded mileage reimbursements.

-Sign up for business shipping accounts, or join a business shipping discount program. Many well-known shipping companies, such as UPS, Yellow, and FedEx offer discount coupons and promotional codes that give businesses serious savings on local, national, and international shipping, and LTL hauling.

Shop for healthcare savings and discounts

The cost of healthcare premiums is steadily on the rise. According to the United States Small Business Administration (SBA), these price hikes mean that only 48 percent of American businesses with fewer than ten employees are able to offer healthcare plans (over 90 percent of businesses with 50 or more employees, by contrast, can offer employer-sponsored health coverage).

It is risky to have uninsured employees. Common chronic illnesses like high cholesterol, Type II diabetes, and depression can cause absenteeism and under-performance on the job. Reality is cruel, however: businesses with fewer employees just don't have a large enough risk pool over which to spread healthcare costs. Health plan costs can have a big impact on the costs of doing business at small firms.

The following suggestions might be beneficial to small business owners who wish to offer their employees healthcare coverage:

-Consider allowing each employee to choose his or her own individual plan, and provide partial reimbursement. Each employee can choose the healthcare plan that best suits his or her medical needs, age, and lifestyle. For example, a healthy male employee who is under 30 might choose a high-deductible plan with bare-bones options. Meanwhile, a middle-aged woman with diabetes might choose a low-deductible plan with a generous prescription drug allowance.

-Opt to start a self-funded plan for your office. Instead of paying out premiums, start a healthcare pool, into which each employee pays. Use this money to pay the costs of employee medical bills. During years when your office crew is healthy, you – and your employees – will save cash. This sort of plan can be supplemented with low cost “emergency” insurance for each worker.

-Join a group or guild. A small business has a small risk pool, which makes the costs of group coverage high. Risks are offset by size, which is one reason that larger businesses have less financial difficulty in insuring employees. This problem can be overcome in some instances by enrolling employees in a union, group, or guild that can offer insurance. Examples of such groups include The Writers Guild, The Entertainment Industry Group Insurance Trust, and various local chambers of commerce.

The rising costs of fuel and healthcare can hobble businesses. However, proactive planning combined with bargain hunting can help even the smallest business weather a recession.