Profit and savings are somethings that keep ticking the clock of a businessmen’s mind. The margin on selling price is one thing. You even need to save on the purchase made for business, and bulk buying is one such efficient method. It saves you from feeling the pinch on your bank accounts. Is it just a lower price or something else that makes bulk buying popular among businesses. Let’s know its advantages
Advantages of bulk buying
Big savings: In bulk buying, the price of each unit is reduced by some percentage. So, you pay less or get more for the amount paid. With smaller quantities, there is a frequent expense of delivery cost and tax on every unit. Bulk order saves you from such small yet big expenses.
Also, these savings further help you offer lower prices to your customers. This will gradually increase your sale and number of loyal customers.
Ample product for supply: Being a large scale supplier your products need to be in-stock all the time. Stocking up will save you from dealing with angry customers and get new customers as you will never be out-of-stock. This acts as a great advantage during festive seasons and sale periods.
Eco-friendly: Bulk buying reduces packaging wastes. Purchasing individual product means packing of each unit and fuel consumed during every delivery. Also, it abolishes the waiting period. Bulk buying for business saves you and the suppliers from such issues. Even the manpower is exhausted in this whole process.
But, a bulk purchase should never be a hasty decision. Impulse buying can result in big mistakes such as cash crunch, wastage of products, etc. So, you need to consider a few things before doing the bulk ordering, such as
- Calculate the quantity: First and foremost thing is to calculate the actual quantity of product you need to purchase. Get an answer to questions such as what kind of sale does the product have, at what time or season it is sold the most, at what intervals is it being sold, does it have a shelf life, etc. All such question will help you reach a number you need to order for your business.
- Storage space: Analyse if you have ample storage space for the product and quantity you are ordering. A bargain, good quotes or emergency stock up is useless if you are short of space. Stuffing larger quantity in a small space is even harmful to your products. It would affect the quality, shape or packaging of the same.
- Shelf life: Checking expiry date is a must with perishable goods storage. Before you invest a good amount of money in bulk purchase, check for the shelf life of the product. The warranty period should not be expired, nor the manufacturing date should be too old, else your product is likely to face rejection and return. Subsequently, you end up wasting a huge amount of monetary investment.
Bulk buying quotes are enticing but to make the most of it you do need to consider the above-mentioned points. Being a small and medium business owner, bulk orders can help you save big. But before you make purchase compare prices and request for quotes (RFQ) from different companies. Moglix addresses bulk order queries by providing the best quotes within 24 hours from different suppliers. You don’t need to waste your time searching for products or approaching suppliers. Also, don’t get confused between RFQ and RFO. To grow your business you always need to stay alert and in-sync with technology.