How realistic is this method in cutting costs? According to a recent article on WSJ.com, companies have been able to negotiate savings of up to 15% of their operating costs by renegotiating leases. If you're a good paying customer, there's a chance your suppliers will also give you a discount if you agree to terms that can also help them, such as paying in cash or with a check within a specified time period of delivery. But you have to ask for the change.
WSJ quotes a survey from the Small Business Research Board, that found that about 15% of respondents had renegotiated long-term fixed-cost supply contracts as of September 2008.
It comes down to a simple concept: Your suppliers and leaseholders would rather keep a reliable customer and continue getting paid than have to expend the resources on finding a new client without an already established relationship.