Business owners have a tough time working on their margins and scaling up productivity due to the erratic spike in prices of inventories coupled with uneven demand-supply challenges. There is an eternal battle to minimize the overhead costs to a bare minimum. Buying when done in bulk drastically reduces the per unit price, and as a business owner, you can exercise a higher degree of control over the price you pay for inventory supplies. Annual rate contracts offer buyers as well as sellers a win-win scenario where both parties agree on a negotiated price for term of the contract. The certainty bought by annual rate contracts or ARCs ensure that both buyers and sellers are safeguarded against a sudden spike in prices. It is necessary to exercise caution while buying in bulk so that you do not end up buying something which you do not need.
Benefits of Bulk Buying and Annual Rate Contracts:
* Bigger Savings: Bulk buying minimizes the cost per unit of inventory and enables you to pocket more significant savings. You end up saving more for the amount you pay for goods. While buying products in smaller quantities, the delivery costs eats into your margins. Bulk buy, therefore, gives you the option to optimize your supplies. If you have decided to go for bulk buying, always choose an annual rate contract over an agreement where there is a risk of prices rising over a period of time. ARCs hedge your price risks annually.
* Lesser Supply Challenges: If you are a large scale supplier, then it makes sense to opt for bulk buy along with annual rate contracts so that you do not run out of supplies when needed. Getting supplies in bulk can help you in those high-peak festive sale seasons. If you stock supplies before sale season kicks in, you can offer "hard-to-put-down" discount deals for your customers and grab a bigger market share.
* Reduced Packaging and Material Handling Costs: When you buy in bulk, you tend to save a lot in labour, packaging and material handling costs. It also cuts down the waiting period, and you can deliver goods faster to your customers. You can negotiate for better prices for logistics if you get into an annual rate contract. The logistics provider will be willing to offer you a better price because of assured business.
Bulk buying should not be done at the spur of the moment. You should carefully study your requirements before going for bulk buying else you might end up wasting products and increased warehousing costs. It is, therefore, necessary to do a comparative study of prices from different suppliers. Shakedeal offers you the option to place bulk requests by giving the best quotes for your requirements within 24 hours. It also gives you the flexibility of ordering in bulk for your immediate requirements along with attractive annual rate contracts.
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