Businesses cutting costs – consumers feeling the pinch!

It’s not hard to see that there is a financial strain on everyone’s pockets. The economic situation affects everyone even big businesses.  As they try to cut costs, every service they offer is being scrutinized to ensure that they save as much as possible.

How do they cut costs?

One way big business cut costs is by eliminating non-critical perks and activities, such as holiday parties, event tickets, and tuition reimbursement from their employees.

Consumers are affected by this because withdrawing these perks will make the work environment a tense one and can hamper productivity. Unhappy employees can take out their frustrations on customers and provide poor service.

Another way businesses save money  is by charging customers for services that were previously complimentary.  For example I used to get free WiFi at a popular restaurant however, in an effort to cut costs they now limit the connection.  In order to facilitate this customers get a slip of paper with the WiFi password and the first 45 minutes are free.  If the customer wants to continue to use the connection after this time then they have to pay an additional cost.

How are customers affected?

Well it seems a bit like you needed to ensure that you use the connection as quickly as you can since it is timed.  Of course, it is understandable that some customers might have taken advantage of the previous arrangement but it certainly helped to make me feel relaxed.

Some companies are even removing refreshments that were previously offered to their customers.  This includes water fountains or stations with hot water and tea.  These refreshments are usually well appreciated by customers and their loss makes the wait for service seem longer.

The removal of refreshments might seem to be a logical choice to make in order to save money however, unhappy customers might make bad decisions.  It pays to keep your customers happy!

Some businesses even decide to remove air conditioning or use it sparingly.  This is never a good idea with our climate.  A better idea would be to invest in an inverter air conditioning unit which will reduce the electricity bill.

Overall consumers are affected by the decisions businesses make in order to save money.

What’s your take on the issue?

Let me hear from you!

Teri Ann Renee Paisley

Gleaner online writer