4 Suggestions for SMEs to Get Better Pricing from Suppliers

As a business owner, you know how important it is to get the best pricing from your suppliers. While it can be difficult to get the lowest prices, here are 4 suggestions to help you secure the best possible deal from your suppliers.

1. Establish a Long-Term Relationship

Developing a long-term relationship with your suppliers is key to getting better pricing. When your suppliers know that you’re not looking to jump ship and that you’ll be sticking around for the long haul, they’ll be more likely to give you better pricing. This would include getting to know them better, working together on marketing strategies, discussing long-term plans with them, and inviting them to join on brainstorming sessions for business improvement.

2. Negotiate Volume Discounts

Many suppliers offer volume discounts, so it’s worth asking for them. As your business grows, you’ll definitely be able to negotiate bigger discounts. In the meantime, give them a 6 or 12 month plan, so they can see you have the capacity to take on more.

3. Take Advantage of Bulk Purchasing

If you’re able to purchase in bulk, it’s worth taking advantage of this. Many suppliers offer discounts for bulk purchases, so it’s worth looking into this option. Depending on your line of business, it may be worth speaking to other businesses who are not competitors to come together and create a buying group. That way, everyone wins.

4. Leverage Technology

Technology can be a great way to get better pricing from suppliers. There are many online platforms available that connect you with suppliers and allow you to compare prices and find the best deal, and then using that information in price negotiations.

Pricing is a delicate game, and getting good cost prices is even more important than setting selling prices. Get better at this element, and business becomes a lot easier and more profitable.