Better Prices from Suppliers | Cost Saving Purchasing Tips

Money Saving Purchasing Tips
Ways to Receive Better Prices from your Suppliers

Effective purchasing may seem like a basic business process, however sometimes the obvious can be overlooked. Effective purchasing can have a massive positive impact on your profits for a relatively small amount of work, in some instances one call in to a supplier can achieve lower prices. This short video will explore some ways you can achieve this.

Ask you current suppliers for a lower price! Don't be shy, research the market and if you think you are overpaying, ask for a better price. This is key to saving money while purchasing for your company

Don't assume that because you have been loyal to a supplier for a long time they are giving you their best price. Insurance is a good example of this, once you buy a policy and you are auto renewed every year, the premiums rarely go down. Ask questions when it's time for a policy to expire, let them know you're paying attention. Save money when purchasing insurance by using a broker.

Save money when purchasing by reviewing your prices and supplier list regularly and benchmark against the market, complete a full review of your supplier portfolio at least once a year.

For high value items and one off purchases, get at least three comparative quotes. There can be a surprising range of prices available.

Use your purchasing power, save money by reducing the size of your order from your current supplier and push extra volume or activity to a new one. Once you inform your supplier that you will send more orders their way if the price is right, you just might see a sudden willingness to negotiate.

When ordering look out for suppliers adding unwanted charges, like delivery, insurance, handling fees. These items tend to be low value add-ons but can mount up and add zero value. This is the number one rule for saving money when you purchase inventory or business supplies

In addition to your trade suppliers, the following areas often provide opportunity for cost savings;
Insurance for; motor vehicles, liability, or workers compensation; Phones and wireless connections, particularly plan types; Banking and finance charges and Marketing, both online and print

Don't forget to subscribe to your youtube channel to receive free video tips every month!

[harshlogani]

Your videos are really helping me in my new job. Thanks and keep uploading such tips, you are doing wonders to the newbies. ;)