Why Buy-More-Save-More Can Be Sound Business Advice
Even if your yearly purchases stay the same, some companies offer a volume discount and free delivery as soon as your order exceeds a specific threshold.
You know the saying: When you buy more, you can save more. It's one of my favorites, but not for the typical reasons, which can lead to overspending and unsustainable debt.
I come from a different, business-centric angle. Suppose you sell 120 units of the same item annually. To cover your customers' orders, you only buy from your supplier the number of units you sell each month, on average, ten. Every time your supplier sends you a new shipment, you incur a delivery charge.
Here is where the buy-more-save-more marketing slogan comes into play.
What if you bought from your supplier 30 pieces once a quarter or 60 every six months instead of 10 monthly?
You could qualify for two valuable savings:
Free delivery. Since you order a larger quantity, your might hit a threshold at which your supplier covers the shipping cost.
Higher discount. Larger orders can qualify you for a higher (volume) discount.
Even if your yearly purchases stay the same, some companies offer a volume discount and free delivery as soon as your order exceeds a specific threshold. I love offers like these. Just by ordering less frequently but at a higher value, I get a higher discount and free delivery.
Many software subscription services work similarly. By committing to an annual, two-year, or three-year contract, you can qualify for a 10%, 20%, or even 30% discount on the monthly subscription price. For example, Shopify offers a 10% discount on annual plans and a 20% discount on biennial plans.
If your business has financial flexibility, you might consider taking advantage of these discounts. As Benjamin Franklin would say: "A penny saved is a penny earned."
For more cost-saving ideas, check out the following articles:
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