From scarcity to frequent fluctuation in prices, sourcing for production materials could be quite daunting. For many customers, running out of production materials is not reason enough to have their favourite goods and services out of supply. Here are four reasons why you should really consider bulk purchase when next you go shopping for supplies:
Though bulk purchase may seem quite expensive at the point of making payment, it is very cost-effective in the long run. How? When you measure up the cost of the bulk purchase against the cost of individual items, you’ll realise that you are actually paying less and can use the money to fund other expenses on your budget.
Bulk purchase saves you the time needed to make repeat purchases. Also, the effort required to make repetitive purchases will be greatly reduced. The saved time and effort could be channeled into more productive activities.
Better relationships with vendors (manufacturers)
Interested in keeping their production line going, many manufacturers will welcome bulk purchase and for some, you don’t have to make complete payment upfront. One perk of this arrangement is that you can increase your production capacity without ‘having to worry about extra funds’.
Better pricing rate
With the reduced cost of production, you should really consider reviewing your price list. As long as the profit margin remains fair enough, this should give you an edge over your competitors and your customers will definitely love you for this.
However, before you start placing those large orders, remember that the basic idea is to increase your business productivity via your purchases. Therefore, have a proper estimate of just ‘how much will be enough’. The last thing you need is to end up throwing away most of your precious production materials.
Ensure that you have a good and proper storage facility in which you can store the materials. You wouldn’t want to expose the materials to conditions that will reduce their shelf life or quality when you eventually decide to put them to good use.
Also keep in mind that bulk purchase reduces your ‘variety options’. So before you decide to do business with a particular vendor or manufacturer, try negotiating how possible it will be to throw in some varieties.
Finally, as you wade through the pool of different manufacturers’ offers, ensure that you opt for only the best in terms of cost, quality, and quantity.