Tag: vendors

Honing in on the Perfect Profit Margin

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Business owners need to possess multifaceted skillsets. Not only is it imperative to possess exceptional work ethic and business management skills, but you need to be an excellent writer, a mathematician and a creative thinker, as well. When it comes to finding the ideal profit margin, it requires both excellent mathematical skills and innovative thinking. Here is a guide to help you hone in on that ideal profit margin without zapping your mental energy in the process.

Determine What an Appropriate Profit Margin Looks Like

Small- to mid-sized businesses (SMBs) can anticipate lower profit margins than their big-box competitors due to […] scale. Before honing in a perfect profit margin, you need to determine what an appropriate profit margin will look like based on the size of your business, the number of years in operation and the industry [in which] you’re operating.

While profit margins will vary by industry, Butler Consultants reports that, for retailers, the average profit margin is around 48.46%. By striving for an unrealistically high profit margin, you’ll be driving customers away with unreasonable prices; however, settling for a low profit margin could increase your risk of business failure.

Maintain Low Overhead Expenses

When striving to achieve healthy profit margins, businesses often turn to their pricing to see how they can squeeze more money out of each sale; however, overhead and operational expenses can actually have a tremendous impact on profit margins. [B]efore raising your price tags, examine your business model to see how much you’re spending and how you can reduce costs.

Take office supplies, for example. According to Gartner, the amount of paper produced by companies has been growing by a shocking 25% each year. It’s estimated that businesses spend about $200 per year per employee on office supplies. By finding lower prices on office supplies of the same quality, you can reduce this cost on an ongoing basis [and enable] your business to increase its gross profit margin. Compare the cost of office supplies among a variety of suppliers to ensure you’re getting the best price available.

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Partner with Top Wholesale Suppliers

When choosing a wholesale supplier, price should certainly be a primary concern; however, you need to consider other factors that will influence business performance and productivity, ultimately shaping your overall profit margin. How easy is the supplier to work with? Can they accommodate your needs? Are they able to scale their offerings to fit your demands? Do their shipments arrive on time and in excellent condition? All of these will partially contribute to the gross profit margin of your business, so it’s important to take all of it into account when choosing the right supplier.

DollarDays Puts Customers First, Encouraging Business Growth

At DollarDays, our primary concern is customer satisfaction. We understand that, in order for your business to thrive, it depends largely on the performance of the suppliers you partner with. We take our commitment to customer satisfaction seriously by offering the lowest prices possible on all of our merchandise and ensuring we are well-stocked to accommodate orders of varying sizes. Contact us today, and talk to us about your needs from a wholesale supplier.

Original article here: http://globalbizcircle.com/honing-perfect-profit-margin/

5 Red Flags Signaling the Need for a New Wholesale Supplier

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Every business owner knows the importance of a quality supplier. The supplier forms the very foundation of the business, providing you with a vast selection of quality merchandise, partially determining your profit margin and ensuring your shelves are always stocked. With the wrong supplier, your business will suffer, and keeping your doors open will feel like a perpetual challenge. Here are some signs that your wholesale supplier isn’t a good fit.

  1. Your profit margin is struggling. Settling on an appropriate profit margin is always a challenge for business. You need to keep prices high enough that your own profits are healthy, but prices need to remain low enough to compete with other businesses in the area. If you’re struggling to find a balance that’s conducive to business success, the problem could be your supplier. If your wholesale supplier is charging too much for merchandise, it will be impossible to maintain healthy profits while ensuring your prices are reasonable for customers. You need a wholesaler who puts your profits first by offering the lowest prices possible on high-quality merchandise.
  2. Your customers are complaining. Have you noticed an increase in customer complaints? If customers are routinely expressing concern over the quality of your merchandise, then you may need to find a new wholesale supplier. A great supplier is one that provides excellent merchandise at fair prices, and if customers are regularly irritated at the lack of quality, then this is a major red flag.
  3. Your shipments are late. To operate a business successfully, you need to streamline your inventory management so supplies are always ordered on time and always arrive when needed. If your shipments arrive late, it throws off countless aspects of business, making it difficult for employees to do their job and leaving a bad impression on customers. A shipment may be late every once in a while if items are out of stock or if weather is bad; however, if your shipments are perpetually arriving late, it may be time to find a new supplier who takes their deadlines seriously.
  4. They’re calling all the shots. As a business, you are the supplier’s customer, and it’s their job to take you seriously. You need a supplier who’s willing to work with you and can continually meet the commitments they’ve signed up for. If they’re routinely out of stock of the items you need, if their pricing is constantly fluctuating, or if their shipments are inconsistent, this is a huge red flag that the supplier isn’t the right fit for your store.
  5. They offer poor customer service.You need a supplier you can communicate with and that’s available to hear your concerns. You need someone who will perpetually be in contact and update you about the status of your orders. If communicating with your wholesaler feels like pulling teeth, then you’ll end up doing more work than necessary to ensure your shipments arrive as expected. It’s time to find a supplier who offers the customer service you need.

The supplier you choose for your store can greatly improve your ability to operate your business effectively. With the right supplier, you’ll be able to meet your own deadlines more efficiently and remain on top of inventory management. […]

Original article here: http://globalbizcircle.com/wholesale-supplier/