As a business owner, your job regularly demands of you that you purchase inventory at costs that will enable you to sell your goods at prices that make you a profit. It’s a straightforward and common sense business practice to make more money than you spend. However, the best in the business regularly find ways to increase the amount of money they save when buying their inventory.
Buying in bulk saves business owners money.
During the summer months, buying inventory in bulk is a common practice. Business owners across Canada who sell merchandise that is commonly purchased in the fall and winter months end up buying their goods in bulk during the warmer months of the year when they aren’t prone to sell very much. That way, they usually get them at significant discounts. As a result, when winter rolls around, the prices they sell the goods at are able to generate even greater profits.
“By buying in bulk the cost for each unit is reduced, meaning you are getting more for your money,” explains Yoav Farbey of the Startup Magazine, “This can save you money in the long run, especially if you have an affordable storage solution where you can store these items. Buying smaller quantities more frequently can work out much more expensive, not to mention the additional delivery costs on top of the unit price.”
Buying in bulk saves your customers money too.
When you purchase your products in bulk and enjoy significant savings, it gives you the ability to pass these savings on to your customers. Needless to say, being able to save money in your store will be a selling point for shoppers. Today’s consumers are savvy bargain hunters. When you not only offer what they’re looking for, but do so at competitive prices, you’re bound to increase the size of your customer base.
“Customers always look for the cheapest place to purchase goods from, so if your prices are lower than all of your competitors your sales should increase,” agrees Farbey, “By passing on the savings you have made from your bulk buy, you can attract more customers, meaning you have more sales. You don’t need to pass on all of your savings – just enough to be cheaper than your competitors to have that slight edge.”
Is there a downside to buying inventory in bulk?
The most glaringly-obvious issue that may arise for a retailer buying in bulk is cost. Of course, when you buy inventory in bulk, the cost for each unit is significantly less than normal. However, buying a lot of inventory at once is generally a pretty big expense. Although it’s bound to pay off in the long run, a business owner must come up with a large amount of cash if he/she wishes to make that bulk purchase.
At Canadian POS Corporation, we offer Canadian business owners the opportunity to take advantage of a unique merchant cash advance program. It can come in really handy for retailers looking to buy in bulk before the summer ends. This is because they not only need a lot of money, they need the money quickly. Our program can help merchants to secure extra working capital within a 24 hour period!
For more information, call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost.