Tips for Businesses to Save Money on Their Vendors

By Ashutosh Jha → Last Updated on Monday, September 10, 2018
It doesn't matter if you're new to owning a business or you're a well-versed businessperson trying to trim down a few expenses. The goal is still the same. You want to save money but keep your wonderful vendors.

Usually, what happens, a business tries to outsource the work where they don’t have the expertise. For example, if there is a shipping company, they might not have an expertise in IT. And so, instead of setting up their own IT, the company usually outsource it from the IT consulting services like TCS, HCL, Accenture etc.

Tips for Businesses to Save Money on Their Vendors
5 Tips for Businesses to Save Money on Their Vendors
There is nothing wrong with it!

In fact, this is a smart move as you are focusing on your core business without worrying about the other areas which are not your consumer-centric stuff. But the problem comes at the costing part. The procurement part takes a lot of resources.

So, you need to be careful while selecting the vendor to get your things done. This doesn’t only include the pricing but also the quality, timeline etc. depending on your need and priority.

5 tips to save money on vendor operations

Let’s start and see some leading tips using which you can save money on the work you are outsourcing from the vendors. These tips can be applied to any department like transport, food, IT, hardware, infrastructure, logistic etc.

Ask About the “Best” Price

This tip goes well beyond negotiating with vendors, but you can use it for your credit cards and even with your cable bill. Just call your vendor and ask if you're getting the best price for what you're ordering.

After you ask if you’re getting the best price, the representative for your vendor should take a few moments and ask a few questions before supplying an answer. If a representative responds too quickly, they may be giving you a rehearsed “of course we have the best prices in your area” answer. Ask them to look again or start looking for a new vendor.

The key to this tip is that you’re not threatening to pull out of a contract or find a new vendor right away. You are just a concerned customer calling for an honest answer.

Question Incentives

Grab your last few invoices and find the items that you’re ordering more than anything else. Then get a few facts together about your ordering history and preferences. Finally, call your vendor and ask if there are any incentives available for someone ordering the way you do.

Many vendors have negotiable payment terms, prices, and even advertising allowances for particular customers. Sometimes they rely on your ordering history to decide if you’re eligible to receive any incentives.

Control What You Can Control

Sometimes there’s no getting around vendor pricing, but you can incentivize the lower cost items to save money. From boutique stores to large franchise restaurants, many businesses will utilize reward coupons for a home to push the product that makes them the more significant profit.

Call the Competition

Even if you are happy with your vendor, it can’t hurt to see what is available. Some industries collect market data on vendors, but sometimes these results aren't current or only apply to specific regions.

Either way, call your vendors competition and ask what they can offer you. Sometimes you can even luck into some tremendous introductory deals if you do decide to change vendors.

Look for the perks

Most of the time you will find a vendor providing services for multiple services and offering discounts when subscribing to more than one services. For example, Adobe!

save money by hiring single vendor
Adobe offers cloud solution, email marketing solution, PDFs, and much more. So, if you need more solution and an existing vendor has that, do try to subscribe in order to save more. You may ask your vendor about it and then come to a common conclusion.

Conclusion

These were some of the implementable tips to save money on vendor operation. Again, it’s a good idea to outsource some work to the vendor but cost incurred should be in the consideration.

Do you have any other idea which should be considered while working with the vendors?
Ashutosh Jha

Ashutosh Jha is a professional blogger, Blog and IT Consultant. He writes about Blogging, SEO, Making Money, Internet Marketing and Web Design.
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Website: TricksRoad