As a business, you will constantly be on the lookout for new ways to save money. One tactic that has long been a favourite is to bulk buy wherever possible, but is this really as cost-effective as we have always been led to believe?
Bulk buying is usually done through a wholesaler who can offer you better prices for ordering in large quantities. You can make purchases in advance that will sustain your business for some time and keep your shelves filled. However, many businesses question whether this is the best way to do this
Here, SOS Wholesale, specialists in wholesale produce, share their insight into what bulk buying actually involves and how it can benefit your business.
We all know that money talks, and without a doubt, one of the biggest advantages of bulk buying is the amount of money that it is possible for you to save. When you buy in bulk, the cost of each unit is reduced, no matter what it is that you are buying. Sometimes this reduction might only be a few pennies, but this still adds up to a significant saving when buying in large quantities.
It does mean that you have a higher upfront cost to pay for, but it provides a long-term saving that cannot be matched when buying in smaller quantities. By ordering in larger amounts, you can also save money on the number of deliveries that you need to receive. Once you have bought your stock at a lower price, you can start thinking about your profit margins and decide how much you can then add onto your cost price for your customers to pay.
When you become a long-standing customer of a wholesaler, it can also give you a lot more buying power. You may find your self in the position to negotiate even better deals than you were already enjoying, which is good for your customers and your bottom line.
The better the cost price that you can achieve, the better the price you can advertise your goods at. Whilst it might be tempting to sell them at the highest price possible, sometimes having something which undercuts the competition can be a bigger draw for your customers.
Once you have their attention, you have a greater opportunity to sell them other items and increase their overall spend. In a crowded marketplace, your business will be looking for anything that can give you the edge, and so offering items that don’t eat into all of your profits but put you cheaper than the rest can prove popular.
Buying in bulk tends to be more convenient for everyone. No one wants to keep going back to their supplier to order more stock on a daily basis, and your customers will soon become fed up if they cannot get their hands on the things that they want. Ordering items separately can be very time consuming, so putting it all into one order frees up your time to do other things.
By buying large amounts from the same place, you are also in a better position to guarantee a consistent level of quality. When the entire order is produced and delivered from the same place, you can be sure it is all the same, and do not need to worry about any differences that you might have if you were to order in smaller batches or from different vendors.
In a world where we all want to be more conscious of our impact on the planet, by buying in bulk you can inadvertently be greener. As you are buying in large quantities, there is usually less packaging involved. This means less damage to the environment as less packaging needs to be produced, as well as far less of it going into landfill.
In addition to this, you will need fewer deliveries thanks to the fact that you are placing larger orders. This means less transport and therefore less fuel being used. Making your business as green as possible is not only good for the environment but is also a winner with customers who are looking to support more environmentally aware businesses.
No empty shelves
There is nothing worse than shopping for something that you really want, only to find a gap on the shelf where it should be. Buying bulk makes this less of a risk, and you will have much more stock waiting to fill up those empty spaces. If you have adequate storage, you can make sure that you always have plenty of stock, even at the busiest times of year. Just remember to order from your wholesaler in plenty of time to ensure you are topped up when you need to be.
You can be selective
As they buyer, you still have the power to choose. There are plenty of wholesalers available, so make sure that you pick the one that meets the needs of your business. Not only will they need to carry the stock that you want at the price that you want, but they should also offer excellent levels of customer service.
You need someone that can offer you the delivery options that work for you as well as the advice and expertise that is sometimes needed. Investing the time initially in finding the right wholesaler is always worth it when you are looking for a long-term relationship for your business.
Buying in bulk is a popular choice with most businesses because of the huge number of advantages that it can bring. It isn’t just the cheaper option; it is also more practical and convenient and will help to make your business efficient and competitive.
With a proper buying strategy in place, you can focus on other areas of your business, knowing that the quality, price and availability of your stock is all taken care of. That means that bulk buying is no longer just a buying technique, but a recognised method of supporting and benefiting your business in a wide variety of ways.