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PINCHING PENNIE$: Owosso businesses find ways to cut costs, keep afloat
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Saturday, November 14, 2009 9:16 PM EST
For years, saving a few nickels and dimes over the course of a work day was just a smart idea for businesses that never know when a rainy day might come along.
In today's economic climate, Owosso business people say saving pennies is a resourceful move.
“There are less and less people living here in Owosso every day and business owners have to find ways to make up for that,” said John Orin, owner of Roma's Back Door, 200 E. Comstock in Owosso. “It's extremely tough. But you have to keep busy and stay competitive.”
Businesses in Owosso are doing everything in their power to save as much money as possible.
Orin travels to a warehouse in Detroit twice a month for supplies, such as canned goods, fresh food items and paper products.
“We never would have thought about doing that before,” he said. “They're the same products we were buying from the supplier, but we have to be realistic, there are great savings down there.”
The restaurant also provides customers with a lighter menu and smaller portions, but all dinners now include the salad bar.
“We give more value for the pricing,” he said.
Roma's also has shortened its hours of operation by an hour, installed programmable thermostats and isn't replacing staff when employees leave. Orin said he and his wife have been pulling more shifts but at times, monthly figures still appear in the red.
“I don't know what else to cut,” he said. “But I'm a survivor and we're fortunate we don't have a big debt to pay off. Roma's is fine, we're not going anywhere, but sometimes, it's scary.”
Owosso NCG Cinemas has refrained from outsourcing services, such as lawncare, snow removal and gardening at times, having employees team up to complete the tasks themselves.
Jeff Geiger, vice president of corporate development, said relaying the message to managers at various locations has helped - and the company is seeing a steady decrease in utility bills from month to month.
Properly installing thermostats, low-watt light bulbs and motion-censor lights have allowed some of the larger cinema locations to have lower bills than smaller locations without them.
“We don't want to play around with the presentation (of our movies) too much, so these changes help save money,” he said.
At Nelson-House Funeral Home, owners Kevin Kregger and Bob Nelson are convinced the basics of their business will get them through the toughest of times.
“We're always here, trying to do more ourselves with a three-person staff,” Kregger said. “We're hitting the grindstone, working hard and shutting lights off when they're not needed. It's just about keeping your nose down, working hard and taking care of the families in our business.”
Kregger said the company's personal touches go a long way.
“If you call us at 2-3 a.m., you'll get us, unlike other places you'll get an answering machine,” he said.
Christina Gipson, corporate account manager from Consumers Energy, said there are many steps business owners can take to save their company substantial amounts of money every week.
Both businesses, as well as residents, are encouraged to use lower-watt light bulbs.
“Also, incentives will be given to those who register for Consumers Energy Savings Solutions program and strive to be more energy efficient,” Gipson said.
Consumers Energy has $6 million in incentive checks to give out, and $31 million through 2011.
By going to www.consumersenergy.com, businesses can learn how to sign up for the program, created in response to the Clean, Renewable and Efficient Energy Act of 2008. Rebates are given in the form of checks to the business.
Some equipment replacements that lead to incentives include permanently removing lamps and installing occupancy sensors, which Memorial Healthcare has done.
Between $3-$5 incentives are possible for switching to more energy efficient light fixtures, as well as $12.50 for each wattage downgrade for exit signs. Normal 30-watt compact fluorescent light bulbs in lamps installed will give $1.50 back in incentives.
A Live Roof system in the Memorial Medical Arts Building was installed to maximize efficiency with heating and cooling bills year round. The roof keeps warmth in during the winter and cool air in the summer. The medical arts building saves money for multiple sectors, such as the Cancer Center, Gastroenterology Center, Blood Disorder Center and service provided in affiliation with The Great Lakes Cancer Institute for Radiation Services.
Memorial Healthcare also has taken measures to reduce energy levels and lighting bills by installing occupancy censors in all bathrooms and storage rooms that turn off lights after no movement is detected inside. Also, most of the fluorescent lighting fixtures have been retrofitted to fit smaller wattage bulbs. Other fixtures are using compact fluorescent bulbs instead of traditional incandescent models. Exit signs have been switched to have minimal-LED lighting too.
Hearing about the rebates last week at a Michigan Library Association conference sparked Shiawassee District Library Director Steven Flayer to put the item on his to-do list, hoping to sit down with Consumers Energy to hammer out ways to save and earn potential incentives.
“Even if we can save three to four kilowatts a day, somewhere down the line, that's a power plant we don't need to purchase,” Flayer said.
The library has recently switched out incandescent lights with compact fluorescent light bulbs and installed programmable thermostats with timers.
“We're trying to get the most bang for our buck as possible,” he said.
Office supplies are purchased in bulk for the cheapest amount possible and Flayer said he constantly asks himself before any purchase, “Do we really need this?”
“We're trying to take a look at life cycle costs of equipment,” he said. “If we can spend a little bit more on a piece of equipment but get twice the life out of it, that is a money saver.”
Flayer said he also sees a direct correlation between saving money and recycling, as the library has made a conscious effort to promote it.
Businesses may call 1-800-805-0490 to learn more about savings and incentives through Consumers Energy or check out the “Consumers Energy Savings Solutions” section of its Web site.
taxpayer wrote on Nov 16, 2009 1:43 PM: