Small businesses are struggling more than most to keep afloat in the economic downturn. Overhead costs need serious cuts to ensure the company’s survival. You may have had to downscale your workforce to stay in business, but when it comes to your supplies, up-scaling means more savings.
By bulk buying your products, the cost per unit of each item dramatically decreases. You could save yourself a lot of money, if you’re yet to jump on the wholesale wagon. Here are just a few of the benefits you could gain through bulk-buying, and who knows, it could be the life jacket that gets your small business safely through the recession:
Bulk Buying Membership
For some companies, you can only access the low price items if you become a member. This is a pretty exclusive deal, and you may have to pay an upfront fee, but it’s worth a look at, as the savings may far outweigh the initial costs. It’s likely that subscribing to an exclusive group also entitles you to a variety of perks that your business may find useful, so shop around and see what deals you can find.
If your products spoil easily, wholesaling may not be for you, unless you can turnover the products rapidly. Long-lasting supplies are ideal for bulk buying and you can be safe in the knowledge that you have a backlog of stock, should your customers start popping tags.
You can research which products are popular in your field before you buy, so you know you have an item that sells easily. The last thing you want is stock that you can’t move. Make sure that you have enough storage space before you send off your first wholesale order. Hiring out a venue to house your products may discount all the cost benefits you’ve received from bulk buying, rendering it useless.
The great thing about bulk buying is that you can sell popular items at low prices and still turnover a profit. Customer will always flock to you, if you’re selling a product at a lower sum than your competitors.
In this day and age, it’s cool for a business to be green. Luckily for your business, bulk buying is environmentally-friendly and not only saves on packaging, but delivery miles too. Get recycling any leftover boxes and broadcast your green credentials to your customers.
Economies of Scale
If you choose to deal with wholesale suppliers, you’ll be rewarded for your bulk purchases with a lower price per unit. You may even be able to drop down your shipping costs significantly. The great news is that economies of scale will work for almost any product, so all small businesses are set to benefit, regardless of which commodity they deal in.
You’ll gain the competitive edge over rival companies in your market, if they aren’t making good use of this business tactic. Ignore the benefits of wholesale, and you run the risk of falling behind everyone else.
Information by guest writer, Zoe, a business blogger and freelance journalist who enjoys using business know-how to help others keep their finances in check. Any stylists reading today can check out salon suppliers online, for all the best deals.