It’s incredibly rare that you’ll come across a business with absolutely no need to purchase any goods or services. Every company needs some essential things to help it function properly. Whether it’s paying for a delivery service to ship your products or simply buying office supplies; everything has a price tag attached to it.
If you’re reading this, then the price tags attached to your goods and services are too high. You’ve looked at your accounts and figured that you’re paying way too much for them. As a result, business is suffering. Your sales are fairly impressive, but the money you’re spending is killing you. It’s draining your accounts and leaving you with losses every month.
How do you stop this from happening and start spending less when procuring your goods/services? Well, here are a few tips for you to think about:
Is your business running out of money? pixabay
Play The Loyalty Card
If your company has been buying from the same supplier for years, then you’re missing out on a big opportunity. It may turn out that you’re their biggest customer, and if you left, then they’d be in deep trouble. So, it’s time to play the loyalty card and aim for a discount. Tell them you’d like a reduced price on their goods/services because you’ve been a client for many years. If they don’t agree, threaten to take your business elsewhere and find a new supplier. There may already be others sniffing around looking to snag a big client like yourself. This should strike fear into your supplier and cause them to offer you a better deal as a token of appreciation for your loyalty. They want to keep you as a returning customer, so it’s well worth a shot.
Hire An Experienced Professional
Most people don’t realise this, but procurement is actually a very complicated field. It’s not simply a case of shopping for goods and services and sticking them in a trolley or basket. You have to actually source out all the potential suppliers, negotiate with them for prices, and find the best deals for your business. If you don’t know what you’re doing, then this is probably how you’ve ended up paying loads for everything. Instead, get on the phone with a procurement recruitment agency and find an experienced professional in this field. They have knowledge of all the tricks of the trade needed to find the best deals possible. Plus, they might already have prior relationships with certain suppliers, meaning they can negotiate better and save even more money. If you’re a business owner with very little time on your hands, then this is an excellent and convenient idea for you.
It’s all about finding the best deal for your company. Pexels
Don’t Buy From Regular Commercial Stores
A lot of small business owners make the mistake of buying their goods from regular commercial shops. They head to an office supplies store and get everything from there, then wonder why their overhead expenses are too high. The prices you get in shops will be more expensive than ones you can get directly from business suppliers. Sometimes, you can see this for yourself in some stores where they list prices for regular people and prices for businesses. If you ever see this, then you can shop in that store, just make sure you have evidence handy to show that you own a business to get the better prices. Normally, you’re much better off directly contacting suppliers as they can offer cheaper deals than retail shops. You get things from the source, saving you money forever.
Stop Buying Certain Things
Often, you buy a lot of goods or services for your business that you don’t need to. The best example of this is the office supplies mentioned earlier. Yes, they’re essential for your company. But, does your company actually need to pay for them? You could save so much money by getting your employees to work on their own laptops or bring in their own pens and equipment. It stops you from forking out a lot of money on things that might just get lost or broken anyway. Think about it, how many pens have been misplaced in your office or broken? How many sheets of paper are unnecessarily used? If people have to use their own things, they’re more careful and waste less.
There you have it; a few things you can do to spend less on business goods and services. Procurement costs are one of the largest expenses you’ll experience, so it pays to keep them as low as possible. You’ll save money, leaving your business more space to make big profits.