In this age of (relative) austerity, buying in bulk is one of the smart ways to save a buck.
That seems intuitive to buy in bulk on one level and counterintuitive on the other. After all, we all know buying in bulk tends to save money over the long haul. On the other hand, it means a larger upfront cost, and that’s something a lot of small businesses have trouble swallowing.
Yet the balance almost always tips toward buying your supplies in large quantities. Look at it this way: If you’re purchasing enough plates and silverware for your restaurant to last you a couple of years, you’re avoiding fluctuations in prices, emergency situations that arise when accidents lead to half your silverware being broken—let’s say an earthquake, since those are all the rage—and ensuring you have a healthy stock to deal with any scenario.
It does require that you pony up more of your hard-earned cash upfront, but unless that’s impossible for your business to handle, the benefits far outweigh any drawbacks.
Of course, you can also get a little financing to help you buy in bulk if need be, in the form of something like a working capital loan. Definitely something to keep in mind.
Do you buy in bulk? Weigh (ha!) in.
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