Earn More for Your Dollar – Purchases of Raw Materials and Finished Goods
Would you like to earn more from your business spend? If the answer is Yes, then Into the Blue NZ Limited have the solutions to help you gain more from your expenditure.
We are different because we back ourselves to achieve a win-win outcome! If we cannot identify profit improvements for qualifying businesses to a value of more than our fees, our services will come at ZERO RISK to you – No Profit Improvements, No Fees.
This is the second in a series of posts. In this post we will discuss how to obtain better value from your suppliers when purchasing raw materials or finished goods for resale. For most businesses that produce and sell or just buy and sell a product, this is one of the largest components of their cost of sales.
Improved value or savings can be achieved from the following:
- Improved Discounts from:
- Meeting or bettering payment terms
- Volume
- Free product
- Free freight
- Improved terms of trade including payment terms and guaranteed delivery times.
- Where there are multiple suppliers, obtain at least three product quotes.
Free product in lieu of a cash discount should not be overlooked as many suppliers are manufacturing or importing in bulk, and so incur additional storage costs to manufacture efficiently or meet minimum order requirements on imports.
It is our experience from using our Rapid Profit Radar Diagnostic, that 50%+ of a business’s profit improvement will come out of its supply chain. This is one of the first places a good Business Advisor should be looking to add value to a business.
Profit improvement requires an analysis of your spending and Into the Blue are experts at analysing spend with a view to extracting both increased value and increased profits.
For most mature businesses we offer a Zero-Risk policy… No Profit Improvement – No Fees.
For more information please either reply to this post or email profit@intotheblue.co.nz
For more information on creating or improving a business model please call John on (021) 625-871, and further more information please visit Into the Blue.
