Does it pay to be loyal to suppliers when the BEST deals seem to go to NEW business customers?
Winning new business will be top of the agenda for all sales based organisations in the early part of 2010. Many suppliers will be increasing margins on existing spending accounts to compensate for losses of the deals in place for new business customers.
For a product you could easily buy from a number of suppliers pricing structures will be considerably lower as a “New Customer” than the pricing you would pay as an “Existing Customer”. This is something to watch out for throughout 2010 when buying products for your office. As the economy is still uncertain this loyalty balance should only ever be within 5% of the “Special Deals“.
Often the new business deals are a hook and will not be sustainable for more than a year. Margins are likely to increase gradually so it goes unnoticed.
Negotiating and obtaining the best deals means staying one step ahead of your suppliers at ALL times. Constantly check the price for the goods in the marketplace before ordering. An outside source can do the job if you do not have time to see or speak to an office supplies company. Often this is only charged with a small commission from the savings made.
Depending on the products you’re buying and the saving you want to make it is advisable to call similar companies in on a quarterly basis to give you revised quotes. Supplying them with your invoices will be the most effective way to reduce your buying in prices. This method is often implemented for the purchasing of indirect purchases such as office stationery and print. This is because the products bought are similar from month to month.
We are often asked to help reduce costs on purchases in the office so please feel free to drop us an email through the Contact Us page if you would like us to check your supply costs.
Posted under Business News
This post is a Blogger on January 4, 2010
