Yahoo Finance I Follow Dave Ramsey’s Frugal Habits and It Saves My Business up to $192K Per Year
For many entrepreneurs, Dave Ramsey’s famous money principles are life changing on a personal level. But they can truly transform a business’s financial picture too. Just ask Brian Kroeker, president at Little Rock Printing.
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Kroeker is a devout Ramsey fan who has implemented the finance guru’s cost-cutting strategies throughout his commercial printing operation. The results? A staggering $8,000 to $16,000 in monthly savings. That’s up to $192,000 per year his company pockets thanks to some wise frugal habits.
So what are the specific frugal habits straight out of the Ramsey playbook that allow Little Rock Printing to save so much? Kroeker broke down his three biggest money savers.
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Always Negotiate Everything
“Monthly, we save between $8,000 and $16,000, thanks in large part to a few key practices,” Kroeker said. “We’re big on negotiating with suppliers — Dave always says, ‘If you don’t ask, you don’t save!'”
He’s exactly right. Securing discounts through bold negotiation is something Ramsey can’t emphasize enough, whether for personal or business expenditures. And Kroeker has reaped the rewards.
“It’s true: Securing even a 5% discount on our major expenses makes a real difference,” he said, “especially [because] in our field of business we are always in need of supplies to keep our printing business running over the year.”
Little Rock Printing’s costs for industrial equipment, materials and services are high. So shaving 5% off those numbers translates to tens of thousands in savings annually, simply by asking vendors for better deals. As Ramsey says, it can’t hurt to ask.
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Buy Quality Once Over Cheap Replacements
Another brilliant Ramsey frugal habit Kroeker swears by? Buying quality items that will last rather than going cheap on disposable goods.
“We also don’t shy away from paying more upfront for quality equipment that lasts,” Kroeker said. “It’s an approach that pays off longer term, reducing our need for replacements and costly repairs, which can really hurt our operation with long downtimes.”
The printing business requires heavy-duty industrial machinery running full tilt on a daily basis. While replacing those machines every few years with cheaper models may save money up front, it ends up costing far more in the long run. Kroeker would rather invest more in equipment built to last 10-15 years with minimal maintenance and repairs needed.
Go Generic To Save Big
Ramsey doesn’t believe in overpaying for name brands; Kroeker takes that frugal philosophy to heart for Little Rock Printing as well.
“And when it comes to materials, we often choose generic over brand names whenever the quality matches up,” he said. “Because, why pay more for a label when the product is the same?”
By buying generic versions of the materials he needs, Kroeker makes sure he and his team get the same quality product or service without paying the premium price tag.
Sustained Profitability and Growth
Collectively, Kroeker’s operating habits stemming from Ramsey’s teachings allow Little Rock Printing to maintain a solid financial foundation.
“These strategies have really upped our financial health and allowed us to expand steadily without compromising on quality or financial stability,” Kroeker said.
Instead of profits leaking out through wasteful spending, exorbitant brand taxes and a disposable mindset, Little Rock Printing maximizes every dollar. The money saved gets pumped back into growing their capabilities, service offerings, and team.
While many commercial printers struggle with ultra-thin margins, Ramsey’s core money principles have been a cheat code to sustained profitability and smart growth for this Arkansas company. When frugal habits save you up to $192,000 per year, that’s money you can invest into strengthening your operation rather than watching it needlessly burn away.
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