Stop Lighting Money on Fire

Stop Lighting Money on Fire

You don’t need another revenue hack.

You need to stop lighting money on fire.

Here’s where ~18% of it is hiding, and how real companies got it back.

When I audit 7–8 figure businesses, the leakage usually sits in the top 3–5 non-payroll lines. A quick cost audit often frees up ~18% without cutting a single headcount.

Want proof you can point to?

Payments (Merchant Fees)

Costco accepts only Visa in U.S. warehouses after striking an exclusivity deal tied to lower acceptance costs.

Translation for you: volume + specificity = leverage. If you’re on a “standard rate + junk fees,” you’re subsidizing someone else’s margins.

Cloud/IT

Dropbox built “Magic Pocket”, shifting most storage off rented infrastructure and improving control over unit economics.

Different scale than your shop, same principle: know your true unit cost and don’t pay list price forever.

Cloud/IT (SMB-scale)

37signals publicly projected about $7M in savings over five years by leaving the cloud, after running the math on hardware + colo vs. on-demand compute.

Even if you’re not going on-prem, you can still cull idle instances, right-size tiers, and renegotiate reserved capacity.

Shipping & Carriers

In softer freight markets, UPS and FedEx have extended discounts and withdrawn certain penalties—meaning re-bids and service-level precision can yield double-digit reductions. If your “fuel surcharge” never seems to go down, it’s time to reprice.

A quick cost audit you can run this month:

Pull last 12 months of spend and rank non-payroll vendors by total dollars. Circle your top 3–5.

For each, calculate effective rate (total fees ÷ total volume). Don’t accept “about three percent”, get the blended number.

Re-bid or renegotiate with precise asks: “We need a 17–18% reduction and a 24–36 month rate lock. Remove line-item surcharges PCI non-compliance and gateway.”

On cloud/software, map users to seats, kill orphan licenses, right-size storage/compute, and switch stable workloads to annual/reserved.

Calendar a re-review in 12 months. Expense reduction isn’t a one-time project, it’s an operating rhythm.

🧠 In Summary

Freeing up ~18% in your top non-payroll spend often unlocks six figures you can redeploy into lead gen, great hires, or owner comp—without selling one extra thing.

Which line will you tackle first: payments, cloud, or shipping?