BUY IN BULK

Buying in bulk can be helpful, but it can also present some problems. The need to buy in larger quantities can make storing your inventory challenging. Plan appropriately. Likewise, consider the variety of products you need to carry. However, combined with the need for quantity, it may hinder wholesale purchases—partner with a knowledgeable provider willing to provide the service you require. A good wholesaler should know everything about the product and offer alternate choices.

Products Sold in Your Business

Selecting the best wholesaler for your product is essential to your profitability. Wholesalers bring products directly to you from the manufacturer. Discounted pricing is because wholesalers generally require purchases to be at certain minimums. Minimum order amounts are typical in most industries. ARE YOU BUYING, RIGHT?

Wholesaler Selection Requires Research

An internet search of wholesale directory providers can serve as a starting point in making your vendor choice. Calculator in hand, could you analyze unit costs when buying in bulk to accomplish the additional gains you expect? https://www.shopkeep.com/blog/how-to-buy-wholesale#step-1

Other Items to Consider When Buying in Bulk

Besides, when working with a wholesaler, you must ask the following questions?

Are there fees or memberships to pay to use the wholesaler?
Are there minimum shipping quantities?
How have other businesses rated working with the wholesaler?
Will your projected retail price give you the profit you desire?

When Should You Buy in Larger Quantities?

If you usually purchase the same product every month, look at your monthly purchases and consider buying in case lots.
You must look at the quantity of each case. For example, if you use three items every week and a case quantity is 12, and if your budget allows, you should buy the case.
Always look to see if the discount price is to your advantage.

STOP INFLATION TODAY

You can stop inflation in your business. Yes, you can do something about it on your own. But, unfortunately, you cannot place your confidence in the economy that it will turn around on its own.

Six Ways to Stop Inflation in Your Business

Look at your financial statements to see where your expenses have increased. A good example would be the interest you are paying on your debt. LOANS FOR BUSINESSES
You should review again if buying in bulk can help you with today’s rising cost of goods.
Make sure that employee productivity is being maximized.
Reduce any overtime hours, so you are not paying more than necessary.
Should you expand or reduce any services you offer?
Check the gas prices you are paying, as this has been one of the most significant increases in this inflationary environment. Make sure your employees are not using your credit card for personal expenses. This must be checked on every receipt for purchases. Also, check the time of purchase. WATCH EMPLOYEE USE OF COMPANY CREDIT CARDS

THIS IS WHAT RAMPANT INFLATION LOOKS LIKE

Record gas prices… runaway inflation… Where’s it all going?

In economics, inflation is a general increase in the prices of goods and services. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. Wikipedia.

In our view, some of the Fed’s work today is cosmetic – they want to show that they are fighting inflation when inflation is essentially a supply-driven issue. The Fed is concerned that inflation is currently at 41-year highs. Therefore, your business has been dramatically impacted over the last 12 months with all the rising prices.

United States - monthly inflation rate May 2021/22 | Statista

LOOK AT YOUR FINANCIAL STATEMENTS

How To Find and Fix Problems

Looking closely at your financial statements, you can usually find ways to fix your profitability problems. Below you will find ways to increase profitability, such as increased sales, reduced expenses, and improved productivity. For a good definition of a financial statement seehttp://businessdictionary.com

CASE STUDY: Upon reviewing one client’s profit and loss statements, we noticed the unusually high gas, maintenance & repair expenses. These outrageously high costs were tied to a fleet of 3 cargo vans used by installation personnel. While starting their business, they were trying to keep their start-up costs low by purchasing older, basic, unmarked vans. Unfortunately, they were 3/4 ton with many miles on them and had gas-guzzling V-8 engines. As a result, they were inefficient, costing the company far more than newer, more efficient vans that could do the job better and for less cost!

Their Financial Statements Spotted the Problems:

First, a large service area of 3 cities with approximately a radius of 60 miles, all allocated to the same marketing dollars and pricing structure, was discovered.

Next, three vans averaged 128 miles per day. As a result, there is no profit in time in transit to and from jobs. No money with too much driving! Three vans clocking over 100,000 miles a year ate into profits!

Third, gas costs killed them, with an average of 8 MPG. Add repairs of over $3600 a year, not to mention downtime! And these OLD vans were killing them! Their products were light, so they did not need the 3/4 ton vans. These were just white, generic vans that did not set them out from the crowd!

The Solutions:

First, replace those vans with new ones with ½ ton V-6 engines that averaged 17 MPG. To achieve this, we coached the client on the best approach to getting loans from their bank. We also shared how to get the best loan rates from the bank or go to a credit union for help to acquire new vans.

Next, we reallocated marketing efforts by getting marketing and vehicle decals to correctly identify the vans as they drove all those miles on the roads. After that, the vans became a driving billboard! We wanted everyone to see it. What an inexpensive yet effective way to advertise daily! Every neighbor will know who was trusted to do work next door!

Then, those reallocated marketing dollars had to be readdressed based on the area demographics. The service area was large and diverse, yet they had the marketing dollars spent equally in every area.

Finally, with the savings on maintenance and repairs, they could allocate additional funds to outfitting the installation and retail staff with uniforms and professional shirts to identify their company!

The Results:

First! Improved employee morale and gave them a professional identity.
Second! Marketing vehicle graphics represented 23% of all sales leads the following year.
MOST IMPORTANTLY! Improved efficiency, reduced expenses, dramatically increased sales, and produced MORE MONTHLY PROFITS!

WE RECOMMEND REVIEWING YOUR FINANCIAL STATEMENTS THOROUGHLY AT A MINIMUM OF EVERY SIX MONTHS. PREFERABLY EVERY THREE MONTHS.