Benchmark Federal Credit Union: What Your Competitors and Clients Are Doing to Reduce Business Costs in Q2

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Business budgeting that typically occurs annually should now be revisited quarterly or even monthly to keep up with market fluctuations as we head into Q2.

Which costs are worth reducing and which reductions can pose a risk to your reputation? As the only federal credit union to exclusively serve Chester County, Benchmark Federal Credit Union is particularly attuned to the ripple effects of such financial decisions.

Cost of goods & services

Across all industries, it is widely accepted that businesses are closely watching their bottom lines right now. We recommend that office managers and administrative staff accelerate price monitoring, price comparisons, and negotiation when it comes to purchasing goods and services. Findings should be reported to your management team more frequently for review.

We’re finding that more vendors and suppliers are willing to negotiate to maintain your business, so don’t be shy about asking for a discount when warranted, including for business insurance. While insurance is a necessary cost, you may be surprised to see how widely rates vary.

Refurbished equipment and furnishings 

Just as you scrutinize opportunities to find savings for goods and services, similarly you should take a closer look at your equipment and furnishing purchases. These costs may be increasing as your workforce continues to return to the office, but buying everything brand new is not always the best choice. According to Entrepreneur, by buying refurbished equipment, you may realize savings that average 30 percent to 50 percent of the selling price for the same equipment in new condition. Refurbished equipment is typically fully inspected and comes with a warranty that provides peace of mind. Many of our business clients have successfully cut costs in this manner.

Other cuts that really count

When it comes to cost reductions that realize significant savings without heavily impacting the client experience, there are a few key ones that continue to surface. Switching from a landline to a VoIP provider can make a big impact. By auditing your monthly software subscriptions, you may also find significant savings as you unsubscribe from those that are no longer necessary.

As the cost of fuel continues to be expensive, we’re seeing more business groups share rides to in-person events and client meetings. This has also been a valuable way to reunite teams who are transitioning from isolated workspaces.

The rising price of paper, ink, mailing supplies, and postage also makes an impact on your budget. Go paperless by switching to digital correspondence and digital invoicing when appropriate.

Never give up on giving

Over the past few years, many businesses have cut costs by diminishing support for outreach programs in our Chester County community. This was never a consideration for Benchmark Federal Credit Union, and we’re seeing that commitment really differentiate us in the marketplace as we continue to support more than 20 community events and organizations annually. While contributions are considered an expense, I don’t believe this is a place to cut. In fact, providing support raises morale, and can even improve the bottom line. Our outreach efforts resulted in Benchmark FCU being named 2020 Business of the Year by the Greater West Chester Chamber of Commerce and honored with the 2021 Corporate Partner Award by Arc of Chester County. We continue to expand our outreach, including as an approved IOLTA institution and community partner of the Chester County Bar Association.


Daniel J. Machon Jr. is the President and CEO of Benchmark Federal Credit Union. The only federal credit union to exclusively serve Chester County, Benchmark FCU has been serving the community for more than 80 years and is known for providing extraordinary service. To learn more about the products and services available at Benchmark FCU, visit our website at Anyone who lives, works, worships, or attends school in Chester County is eligible to join Benchmark Federal Credit Union.

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