Stockpiling is a buzzword in the wake of the Covid-19 pandemic. Shoppers are flooding into shops and buying in bulk, and the demand is causing others to follow suit. As a business owner and boss, stockpiling isn’t anything new. You and many other entrepreneurs have used it as a proven technique to save money on supplies. Plus, it cuts back on wasting valuable resources such as time and energy.
However, buying in bulk, as crazed shoppers stockpiling toilet paper are showing, isn’t always an effective tactic. And, the same applies to companies, too. Continue reading to find out why bulk buying might not be as helpful as you believe.
You Can Use Somebody Else’s Supplies
No, this isn’t a sneaky or underhand hack that involves stealing a rival’s assets. Instead, it’s a reference to outsourcers and suppliers that are willing to purchase the supplies on your behalf. Then, they send them out to your customer base for a fee. Everybody’s a winner! Regarding promotional items or marketing advertisements, it does save money and hassle. You could keep it in-house, yet it makes little sense when Mail it Direct will pick up the slack. The chances of you doing a better job than a professional are slim, so it’s a method worth considering.
The Quality Might Be Poor
Okay, so the deal has saved the business a considerable sum. Still, there are a few areas worth factoring in before you declare it the agreement of a lifetime. The standard of the product or service is a prime example. Although the unit rate is lower, you might end up paying extra because what you have bought isn’t usable. Or, the figure compared to goods of the same quality isn’t as high. You have to put quality over quantity when you get the opportunity.
The Order Could Go to Waste
Stockpiling essentials is a smart move because they will come in handy at some point. That’s why they’re called “essentials.” However, too many firms buy products in bulk that are seasonal at best. As a result, the novelty wears off and the majority of the order goes to waste, costing the business money. As a rule, you shouldn’t stockpile unless you are sure that the products will be useful in the future. Until then, you’re better off purchasing small batches and hedging your bets to protect your budget. Sometimes, more isn’t always better.
Supplies Could Take Up Space
It’s easy to focus only on the price. After all, that has the biggest impact on the company’s bottom line. At least, that’s how entrepreneurs think, yet there are knock-on effects that go under the radar. Have you considered where you will store everything you have purchased? Even if there is room, where will all of your extra supplies go? Storage Vault says 42% of businesses operate out of storage units as office space is too expensive. Therefore, it’s not as if there are acres of room to spare.
Have you looked past the price to obtain the bigger picture?