Does it pay to be loyal to suppliers when the BEST deals seem to go to NEW business customers?
Everyone supplying a product or service wants to win new customers but at what cost? I know in the office supplies industry many suppliers increase the prices on existing spending accounts to compensate for losses of the deals in place to win new business.
For a product you could easily buy from a number of suppliers pricing structures will be considerably lower as a “New Customer” than the pricing you would pay as an “Existing Customer”. You only have to look at your personal car insurance renewal quote each year (normally the most expensive)
Do you buy these products and services from the same supplier during the year?
- Branded Merchandise
- Printer Inks
- Computer Equipment
- Business Gas and Electricity
Smoke and mirrors
Often the new business deals are just a hook and will not be sustainable for long. Margins are likely to increase gradually so it goes unnoticed by the buyer. Negotiating and obtaining the best deals means understanding your suppliers and how they are working out your pricing structure.
Constantly check the price for the goods in the marketplace before ordering is a headache. This can be difficult when suppliers try and offer basket prices so you don’t always know what things actually cost. Work with supplier and compare sporadically. You are not always looking for the cheapest – Aim for “value for money”
An outside source can do the job if you do not have time, but they will charge you for this service and probably take a commission from the savings too. Why give away money if you can do everything yourself.
Depending on the products you’re buying and the saving you want to make it is advisable to call similar companies in on a quarterly basis to give you revised quotes. Supplying them with your invoices will be the most effective way to reduce your buying in prices. This method is often implemented for the purchasing of indirect purchases such as office stationery and print. This is because the products bought are similar from month to month.
We are more than happy to get you some price comparisons from new suppliers so drop us an email using the Contact page. We can even work with your existing suppliers if preferred!
What are your thoughts about “New Business or Existing Customers – Who really gets the best deal?”?
- How do you compare prices?
- What would make you change suppliers?
- Would you be loyal if you knew you were paying more than an new business customer?
- Do you have any tips?
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