The ability to stretch the buying power of your company can be crucial especially when finances become tight. And telling your suppliers the check is in the mail when it really isn't is a habit you'd rather not get into. So here are 4 ways you can stretch your buying power just a little further without getting into trouble.
In some ways the ability to stretch your buying power in time of need is an art. Making sure your suppliers are willing to send you the things you need even when you are a little behind while still getting the best price is important. And even if you are not behind it is always best to hang onto your money for as long as possible. So here are 4 things you can do to keep your money in your pocket just a little longer.
1. Don't pay a bill until absolutely necessary. Unless a vendor is willing to offer you a discount for paying the bill early there is absolutely no reason you should. The money you use to pay the bill can instead be earning you interest. This doesn't mean you should be paying your suppliers late all the time either but if they give you thirty days or more to make a payment use it.
2. Membership associations are often a great way to save money. Often you can earn the fees you pay back many times over because of the discounts you receive on such things like travel, car rentals, and insurance.
3. Use your buying power to swing better deals with your suppliers. Your vendor's want as much of your business as they can get and often they are willing to arrange discounts for your company for bulk buying. Many suppliers will also offer free shipping as long as the amount of goods you are buying justifies the expense they incur.
4. Make sure that you solicit three or more bids for every major purchase you make. The only way to get the price knocked down is to get your suppliers to compete with each other. But also remember that you can do the same thing for items you use everyday. Submit a list to the suppliers you use that carry overlapping products. Tell them what your regular buying habits are for such products and ask them what there best price might be for it. Do not constantly play your suppliers off against each other though because that could jeopardize your relationship. Just make it a regular practice possibly every six months or so of comparing prices.
Your business is important to the vendors that supply you. If you are willing to develop a good relationship with them they will more than likely return the sentiment. And they have the ability to give you a good deal. But you have to ask. They value their money as much as you do yours and everyone is in business to make a profit. Keep that point in mind when asking for better terms or discounts but don't think for one second that they don't have the power to help you if they want to.
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