When you are about to launch your business, what is the first thought or say objective that you come up with? – “How do I keep my costs to a minimum and maximize my profits”, is that correct?
Indeed you do put in a lot of hard work so that you can source the best quality of goods at the best price possible.
Minimizing costs by buying in Bulk
Unless your business is operated around a just-in-time model where you procure and dispatch goods to customers based on orders that you receive or if you are dealing with perishable goods, it’s always best that you buy your goods in bulk from wholesalers.
Wholesalers procure these goods directly from manufacturers in large volumes and sell it in smaller volumes to distributors, retailers, and other small businesses.
“How is this a cost-effective buy?” you ask. Well, let’s make this simple for you. When you go to a supermarket for your groceries and other home needs, you must have noticed goods which are sold as units of higher volume cost less than what it would cost you to buy the same volume in smaller packages? Well, the same principle applies to buy goods for resale in bulk from a wholesaler.
It is a great way to fill up your merchandising shelf and make bigger profits because the goods can be procured at a very low price.
How do I Make a Bulk Purchase
Gone are the days when you had to go from store to store of brick and mortar shops in order to procure your goods.
Imagine how time-consuming and exhausting it would be to go from store to store to compare the prices and quality of the products. Thankfully online shopping has made product comparison much easier.
Just sitting on your couch, you can check out several online wholesale service providers and compare what each one is offering. You also have the flexibility to check out a large number of wholesalers with ease instead of the restricted search you would be doing if you were doing rounds around town.
Also, online purchases are not time-bound. You don’t have to wait for the store to open; you can shop anytime at your convenience.
What are the other Benefits of Buying in Bulk Online
Apart from the ease of procuring your goods and saving time, there are a lot of other advantages when it comes to making bulk purchases.
You are always stocked
When you make a bulk purchase from an online wholesaler, you can make sure that your merchandising shelves are never empty.
Procuring the right merchandise at the right time is becoming a harder task these days, given the competition.
If you have to remain competitive, you need to have the right goods available at all times. It’s especially helpful when you are gearing up for busy periods like the holidays.
When you make a bulk purchase, this problem will be addressed. And since, these wholesalers procure the goods directly from the manufacturer who has obviously manufactured them keeping in mind, the market trends and demands you can rest assured that the wholesaler always has your back when it comes to meeting the trends of the market.
Cutting on the Costs per unit
When you make a bulk purchase, you are making sure that you minimize the cost per unit to as low as possible. If you have taken the cost per unit lightly, then you must understand that it includes several hidden costs such as shipping cost, vendor selection, payment processing, and quality control.
Now that we have presented you with a split view of the factors that are included in the cost per unit, you can better understand, how much it would cost you if you were to multiply all of these factors with the number of units you purchase if you were making individual or smaller purchases.
With bulk purchases, all of these problems are sorted.
Savings in the long run
Some of you might be worried thinking, when you buy in bulk, you might not have enough finances to make a purchase of that volume.
Or sometimes, just the numerical figure attached to the bulk can seem to scare you.
Of course, the upfront cost isn’t all that pretty and if you are new in business, you might not want to part with such a huge chunk of cash. However, in the long run, it saves you much more than you would have if you were to buy smaller volumes of merchandise.
If you are planning on being around for a while, you can also get good financing options in the market to support your bulk purchase, because when you finally do the math, it’s buying in bulk that will help you make real profits.
Good for Business
When you buy in bulk, you are getting goods at much cheaper rates and you can also choose to share these savings with your customers by offering them discounts. You can even buy loved brands at great prices.
With better discounts, you will have better net sales and will be able to flip your goods sooner. You will be able to offer better customer satisfaction and have better customer retention.
With this reputation, your business will certainly succeed and you can get ready for a fresh new batch of bulk goods.
With all these advantages, you can come at par with larger companies too. If you just put your mind into finding the right wholesaler whose quality you can trust, one who offers you good rates and deals, you can also make good profits buying goods online in bulk.