For the average business, office supplies compose a major part of the total overhead expenses, as they’re something used regularly by all employees. The cost presents ongoing concern that continues to increase as a business scales their operation. The key to operating a cost-effective business model is to find ways to drive the cost of ongoing expenses down, so you can maintain higher profit margins.
How Much Are Businesses Spending on Office Supplies?
It’s estimated that the average business spends about $200 per year per employee on office supplies. For law firms, this number greatly increases, costing approximately $1,000 per year per employee. As time goes on, the demand for office supplies increases. In fact, Gartner has estimated that the quantity of paper produced per company rises, on average, 25 percent per year. The more quickly a business grows, the more office supplies they’ll need to consume to keep pace with that growth. As such, businesses are spending ample resources on office supplies, the cost of which is continuing to rise.
How Can Businesses Reduce Their Spending on Office Supplies?
Since the average company increases paper consumption by 25 percent per year, this means your budget for office supplies is perpetually rising. You need a strategy in place to minimize these expenses and maximize company profits. There are a multitude of ways to reduce office supply expenses, while still maintaining high quality resources for your business.
- Go Paperless
As Gartner discovered, businesses are increasing their paper consumption as surprising rates, so the obvious solution is to minimize paper consumption as much as possible. Offer clients the option of opting into electronic billing to conserve resources. Virtualize your storage and filing, leverage cloud storage, and create digital presentations rather than printing elaborate pamphlets for board members or investors.
By conducting as much work as possible in the digital sphere, you can scale back paper waste considerably. In a study conducted by Lexmark, it was found that the average business invested $289,512 to go paperless, while receiving $406,368 in savings, demonstrating the significant cost-efficiency that can be gained by reducing paper consumption.
- Reduce Ink and Toner Expenses
By going paperless, you’ll not only save money on paper, but you’ll reduce your dependence on ink and toner as well. Ink and toner are both highly costly, and eliminating or minimizing its usage can save small businesses thousands of dollars each year.
- Buy in Bulk
You can’t eliminate your dependency on all office supplies, but you can ensure you’re getting the best deal available. To build a cost-effective business model, you need to be partnering with reputable wholesale suppliers who can help you find the best deals on all of your office supplies. When buying in bulk, you receive greater discounts as you increase your quantity, so consider buying as much as possible upfront to reduce your annual spending.
Office supplies compose a major chunk of a business’s overhead expenses. Paper is particularly consuming, as the cost continues to rise in scale as the business grows. However, by opting to take a greener approach and conducting as much work in the digital realm as possible, you can scale your spending back considerably and save thousands of dollars every year. In addition, partnering with the right wholesale supplier will ensure you’re receiving the best rates on all of the office supplies you need. Click here to browse an array of top-quality office supplies at low wholesale prices, and strive to improve the budget of your business today.