Running a small business can be somewhat of a balancing act. You want to keep your team and clients happy, while still keeping your costs low. Business purchasing can be a complicated and expensive process that’s not just a drain on your pocket but on your energy too.
In this blog, we share five easy ways to slash your purchasing costs without losing quality.
Streamline your suppliers
A sure-fire way to lean out your purchasing costs is to consolidate your purchases.
If your business currently works with multiple small suppliers it may be worth switching to a larger supplier and ordering a selection of purchases in bulk. This way you can save on delivery and admin costs
However, if you’ve found a quality small supplier that you like doing business with, it can pay to be loyal. Have a chat, build a relationship and find out if there is any way you could drive down your costs by changing your buying patterns. This could include making higher orders that come with better discounts.
Lower your spec
We’re not suggesting you let quality fall to save a couple of quid (no one likes a cheapskate). But keeping a mindful eye on where your business could afford to skimp could really shave down your costs.
Speak with your team, evaluate what is most important for your company and trim the fat from there.
At Turbine, we’re always looking for new ways to get rid of paper and go digital (call us a bunch of hippie tree huggers, we really don’t mind). From online expense reports to digital time off requests, getting rid of paperwork saves us time, money and papercuts. Embracing digital tools is the perfect way to control and monitor your purchase costs.
As well as saving on printing, using online tools and workplace apps could streamline your purchase orders and keeps everything in one place, simplifying the process and cutting down on errors that can end up costing small businesses a fortune.
Although supplier loyalty can lead to some attractive discounts, keep an eye on what else is out there to ensure you’re keeping your purchasing costs as low as they can be.
You should be reviewing your purchasing on a regular basis, so don’t be afraid to shop around.
- Perform an intensive search.
- Ask peers for recommendations.
- Attend a trade show, exhibition or small business networking event.
Once you’ve secured a range of quotes, approach your current supplier and see if they can match or beat these competitor prices. But remember, do this with respect; nothing ruins a good business relationship faster than discovering your partner is planning to cheat with a younger more attractive model.
Value your time
While you may find a supplier with a good price, don’t be fooled into thinking it’s the cheapest option overall. A supplier that cuts corners could end up costing you more than you bargained for.
Say your supplier is the cheapest around but their lack of attention to packaging means your stock often arrives damaged. The time you or your team spends picking up the pieces, making complaints or repackaging is time badly spent.
Similarly, if your supplier constantly delivers late, it can hold up your supply chain and cost you some serious dough. Instead, seek quality suppliers who invest in proper business processes and make your job easier.