Buying power should be a priority for UK small businesses that have been hit the hardest in the last few years by Brexit, Covid-19, the Ukraine war raising the price of goods and inflation.
Although the business outlook looks aggressive, businesses need to remain resilient and confident to overcome the next few years.
As a small business, we understand the hardship companies face when getting the best deals from suppliers. Many suppliers will look favourably and offer deals and discounts towards companies that spend more money. For those organisations that do not spend as much or are less frequent in usage, they struggle to find a supplier that can offer preferential rates, which costs time, resources and money – which is why many small businesses lose out in the buying stakes.
Not being able to command discounts from suppliers makes it harder for SMEs to compete against competitors.
The pandemic combined with tighter margins and rising costs, forced many small businesses in the UK to shut their doors for good. From 2021 to 2022, there were 581,824 dissolutions in the UK, an increase of 32.9% compared with 2020 to 2021, the highest number of dissolutions on record*.
Forward Thinking
In order to strategically advance our position and the circumstances of our clients, we became a part of the UK’s largest buying group with the buying power of an FTSE 250 company.
As a business, by joining the buying group, we were able to reduce many different business costs and overheads, making us more competitive and enjoy superior rates and deals that were not available on the open market or to our competitors. 🙂
There are several benefits to having buying power:
- Discounts and better pricing: With robust buying power, our buying group are able to negotiate better prices or discounts on the products or services a business would traditionally use, such as insurance, energy, and payment terminals. The amount of money businesses have saved over the years has amounted to hundreds of thousands of pounds.
- Greater flexibility: Having buying power can also give you greater flexibility in your purchasing decisions. For example, you may be able to purchase in larger quantities to take advantage of bulk discounts or longer payment terms to improve your cash flow.
- Improved bargaining position: Buying power gives us a better bargaining position when negotiating with suppliers, thus helping you get more favourable terms and conditions, such as better warranties or more flexible delivery schedules.
- Increased efficiency: By purchasing the products or services you need at a lower cost, you may be able to improve the efficiency of your operations and increase your profitability.
- Stronger relationships: Building deeper and stronger relationships with suppliers can also be a benefit of having buying power. Stronger relations help secure more favourable terms and conditions and receive better service and support from your suppliers.
Review Time
Now is the perfect time to review your general expenses and uncover potential opportunities for savings. Here are some areas to focus on:
Fixed Costs – These are your regular, predictable expenses consistent throughout the year. If you receive any notifications of changes, take the opportunity to evaluate your options. Consider whether you can find a better rate elsewhere or adjust your sales plan to accommodate these costs.
Variable Costs – Expenses that fluctuate with usage can often be negotiated. Don’t hesitate to have a conversation with your supplier to maintain a fair price or secure a volume discount.
Investment – If you need to drive your business forward with external help or new technology, research the costs and plan for it. Helping you focus on your sales goals and plan ahead to achieve them.
By joining our buying group for free, businesses can save up to 75% on their business costs and overheads.
With such huge savings, businesses can reinvest their capital into their company for growth, saving or creating more jobs, marketing, expansion, buying more stock, and so much more.
By anticipating your future expenses, you can ensure that your sales and profits will cover them. This forward-thinking approach will give you the confidence that you’re on the right track to reach your business objectives.
If you would like to cut your business overheads, then Contact Us for a free, no-obligation business review.
*Source: gov.uk