There are a number of advantages to buying the items you need for trade in bulk. The most notable of these is unit price. However, reducing the cost isn’t the only advantage for traders and craftspeople.
Cost
The unit cost of materials and equipment is often the single biggest consideration for most traders as they look to increase their profit margins, and one of the best ways of reducing production costs and unit pricing is by buying in bulk. The unit price of some products can quickly be halved or quartered by buying in bulk rather than individually, and while real savings won’t be made unless all items purchased are used or sold on, a small additional outlay of money in the beginning can result in huge savings in the long run. An artist or photographer, for example, who produces 100 products for sale a year, may make considerable savings by purchasing wholesale picture frames in advance rather than buying frames when a piece of art has been created. In addition to saving on unit cost, buying in bulk can also save on delivery costs.
Environmental Benefits
There are huge environmental benefits to buying in bulk. Products sold in bulk come with less packaging than the equivalent number of items sold individually, resulting in less waste going to landfill. Items sold in bulk also tend to have less fancy packaging and less wastage, as the size of the box or package doesn’t need to be bulked out for appeal. All this means that every time items are bought in bulk, the environment benefits. Having less packaging to dispose of also has cost benefits for the trader, particularly if the packaging is not recyclable.
Credit
Becoming an account holder with a wholesaler may entitle you to credit. This will allow you to generate some income from the products you purchase before you have to pay for them. If you are an artist, photographer or interior design specialist with a high demand for trade photo frames click here.
Benefits and Disadvantages
Of course, there are disadvantages to buying in bulk. There are additional up-front costs, extra storage space is required and some items will be lost through spoilage, particularly if products are being stored for a long period of time. When bulk-buying products, ensure that you have the correct storage facilities, and weigh up any additional storage costs against the savings in unit price. Chemicals , medicines and items susceptible to damp (such as paper), require particularly careful storage plans.
Simple Ordering
Many bulk-bought items can be purchased online or over the internet and delivered direct to your home or business. This means that you save on time and effort — important commodities when trying to make your business or trade viable.
For further advice on bulk-buying for your sector, check out the Bulk Handling Buyers Guide.
There are huge savings to be made with bulk-buying, and traders should consider what items, when bought in bulk, offer the greatest long- and short-term savings.