Cost Inflation - DMT solutions

Why businesses need to reduce costs during an inflation

“Reduce Costs, Reduce Costs, Reduce Costs” –
That’s all we seem to be hearing from employers.

As we find ourselves amid an inflationary period, businesses must look closely at their finances and find ways to reduce costs and overheads.

Inflation can have a significant impact on businesses, causing prices to rise and putting a strain on profits. In 2020 UK inflation was around 1%, and by October 2022, it shot up to a whopping 11.%.

In this blog post, I will discuss why businesses need to reduce costs and overheads during inflation and provide some funny examples to make it more enjoyable.

Firstly, let’s talk about what we mean by overheads. Overheads are expenses not directly related to producing goods or services but are still necessary for running a business. Examples of overheads include rent, salaries, business energy, and office supplies.


During inflation, expenses can rise, and businesses need to quickly find ways to offset these costs.

Now, I know what you’re thinking – “Reduce costs? That sounds boring!” But fear not, my friends, for I have some amusing examples to help illustrate my points.

Global Cost Inflation - DMT Solutions

Business Rates

Let’s start with rent.

Imagine you are the bakery owner, and your landlord has just informed you that they will be increasing your rent due to inflation.

What do you do?

You could negotiate with your landlord to make any alternative arrangements. For example, you could offer them some of your delicious pastries in exchange for a rent reduction. Maybe your landlord has a sweet tooth and would be happy to make a deal.

Another way could be to look at your business rates to see if your business is eligible for discounts or savings.

Next, let’s talk about salaries. Of course, as an employer, you want to ensure that your employees are compensated for their hard work. However, wages can become a significant expense for businesses during times of inflation.

One way to reduce this cost is by offering non-monetary benefits such as flexible working hours, stock options or the option to work from home.

Working from home can be a great way to keep employees motivated and happy, reducing your salary expenses and employees saving on travel costs.

Another way to reduce overheads during inflation is by finding ways to reduce office expenses. For example, encourage your team to get creative with DIY solutions instead of buying expensive office supplies. For instance, you could include making paperclips out of wire or repurposing old cardboard boxes as storage containers.

Not only will this save you money, but it could also lead to some entertaining team-building activities.

Finally, let’s talk about utilities. During inflation, the cost of energy utilities such as electricity, gas and water rates can rise, putting a strain on businesses.

To reduce these costs, encourage your team to be more mindful of their energy usage. For example, you could hold a competition to see who can develop the most creative ways to reduce energy consumption, such as turning off lights when leaving a room or only filling the kettle with the water you need rather than a whole kettle.

Not only will this reduce your utility bills, but it could also promote a sense of camaraderie and environmental responsibility among your team.


Reducing costs and overheads during inflation is essential for businesses to stay profitable and competitive.

Companies can easily weather the inflationary storm by finding creative solutions to reduce expenses and promote mindful habits.

So, let us all embrace our inner DIY enthusiasts and find ways to reduce costs while having fun.

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