What a Supplier and Manufacturer Wouldn’t Want You to Know | Expense Reduction Consulting
1. Not every customer gets the same pricing and services
As a financial services franchise, the cost of doing business with a supplier and manufacturer is not one-size fits all, a supplier’s pricing varies, even if two customers buy the same volume. Additionally, suppliers have a range of free services (training, detailed reports) they can provide that you are likely not utilizing. Do your homework to compare pricing and available services.
2. Margin pricing and bundled services obscure profits
With margin pricing, suppliers keep frequently purchased items affordable by not adjusting the price to account for their loss in sales on other products. Service bundles also obscure true costs and you may end up paying more money than necessary if your purchase was made infrequently or with unnecessary services included as part of a bundle deal that does nothing but pad profit margins at no benefit beyond what’s already offered elsewhere online. Find out more about what a cost reduction services group does to help with expense reduction.
3. Strong-arming a supplier and manufacturer backfires
If you’ve sought out merchant cost consulting then you’d know customers can threaten to take their business elsewhere in order to pressure vendors for discounts. Vendors will start with higher pricing, so they’ll have room later on when negotiating the price down. Being tactful and polite will yield better long-term results though; not only does this show good customer service but also respect towards other businesses which could lead you getting more sales as well!