Cut Te Costs

Jonathan Lax, president of SGL Waber Lectric Co. in Westville, N.J., decided to crack down on unnecessary expenses, such as trips with only one sales call and overspending on airline fares. Lax sent to all employees the following memo with these guidelines, which may interest other companies that are trying to keep the lid on expenses:

* Air travel: Trips should be planned at least two weeks in advance for the best discounted fare. When possible, use cheaper, "new" airlines, such as Midway, People Express, and Empire. National airlines are a good buy only if you can plan your trip solely around that airline. Special multi-stop fares on the same airline should be used whenever possible. First class fares will not be approved.

* Hotels: With the exception of those in major cities, no hotel bills should exceed $45 per night. All hotel rooms are discountable if you push hard enough. We don't expect you to stay in a fleabag. On the other hand, you will find that even top-grade chains accept our rate requirement if pushed hard enough.

* Rental cars: Avoid large rental companies in favor of smaller agencies. You may accept the collision waiver but not personal injury on the rental agreement.

* Travel cards: Frequent travelers will be reimbursed for the yearly fee on one travel card. The card will be in the employee's name and billable to him or her. In the case of American Express, only the green card fee ($35), not the gold ($50), will be paid for.

* Airline clubs: The yearly fee on one card will be reimbursed.

* Air insurance: The company will not pay for air insurance since employees are well covered for life under our health program. (You probably need less insurance on an airplane than for driving to the K mart anyway.)

* Parking: Use long-term parking on trips that are over one day.

* Shipping of materials: Shipments of catalogs, etc., should be planned far enough in advance so that they are not sent via expensive overnight carriers.

* Expense accounts: Expense accounts should be filed for approval the week following a trip so that employees can be reimbursed quickly and in order to keep P&Ls accurate.

Follow Inc. magazine at @incmagazine