Are you tempted when suppliers offer free shipping? Or have you ever overlooked the small print in a contract? If so; you are not alone. But it can be an expensive mistake if you don't stop and ask the necessary questions before making your purchases.
Any self-respecting business leader will say that cost control is essential – often it is only when the bottom line is in the red that many companies take the time to check their own behavior and consumption patterns."Many companies are now planning their work for 2019; including how they will achieve their budgets. But before drawing up major strategies and new growth targets; it may be a good idea to check some of the most basic things;" says Christian Bang Søndergaard; country manager at ERA Group; which specialises in finding cost-saving solutions that optimise companies' finances.
And there may well be money to be saved by following this advice:
1) All prices are negotiable
Suppliers' prices and services vary from customer to customer; even if they receive the same product and quantity. Therefore; there is always something to negotiate. Be sure to ask the right suppliers and compare prices and services – this will help you avoid paying unnecessary overprices.
2) Consider a contract
There are advantages and disadvantages to contracts between customers and suppliers. Contracts can ensure stable cooperation; but they can also lock you in – especially if they are automatically renewed. Read all contracts carefully – even if it may be tempting to sign quickly.
3) Market prices fluctuate
Prices for products and services fluctuate over time. Automatic price adjustments can turn out to be a huge additional expense. It is important to ensure that you benefit from price reductions; so that you do not only experience price increases.
4) The expensive long-term relationship
When you have the same suppliers for a long time; you build up a trust that can be very valuable. However; it can also mean that you can pressure them for a better price; as the supplier wants to keep you as a customer.
5) Analyze your consumption
Check whether you are getting the best possible price. Offers such as "free shipping" may seem tempting; but they can also camouflage prices that are not competitive. Therefore; be aware that an offer may be converted into an extra fee or a higher price for the item. It is also not certain that consolidating your purchases with fewer suppliers will give you the best terms.
6) Discounts that matter?
Customer clubs and purchasing associations can mean good discounts for members; but you should always consider whether there will be better prices outside customer clubs and loyalty programs with individual suppliers and whether the offers in the clubs meet your service and quality requirements.
7) Respect
Suppliers are people too. Show respect and listen to their input. A good; professional relationship with suppliers yields better results and greater flexibility than an aggressive and domineering approach.
