You sell your product at $ 130 and win 30. Your competitors sell the same product for the same $ 130 but gains 40.
How is this possible? Is it a paradox?
Most business owners and marketers visualize success in a business for the utility that represents either the return on investment within a specified period.
We would say that we gain more if we sell better, or we get more useful if the business closes at a better price.
All quite true, however, there is a very simple business secret that will allow us to significantly increase our profits and to illustrate in a better way, suppose the following example:
We bought a $ 100 product and sell it in 130, we believe that we earn $ 30 margin or 30%, to which of course will have to deduct the costs. But how can we win over those 30 dollars, selling the product by the same 130?
Well, the secret lies in being more effective at the time of purchase and get a lower price all costs.
Surely to think it’s a very simple hypothesis, and indeed it is. However, it is also found that many entrepreneurs, managers and purchasing managers, do not give enough importance to this aspect.
So it is so important in business, know how to buy, sell and learn know receivable, as Alex says Dey.
Buying is an art, like selling
You can be a great salesman, but large employers say that a real portion of the gain is achieved at the time of purchase.
Those 10 dollars of difference mentioned in the example, you can win when you buy and is as simple as asking, quote, solicit or negotiate with your suppliers. All providers will be willing to consider an additional discount, especially if you buy large volumes of products.
When shopping, always make sure you get the best price. Even if you’ve done it before, talk to your provider to include you in special offers or promotions.
Always know the prices they handle other similar providers and even if conditions permit, consider buying with someone else if they offer a better price and long-term benefits.
Be extremely wary of credit purchases. Remember to buy in cash and cash has enormous power. When credit purchases prices will certainly not be the same and it may incur in interest or exchange rates eventually increase your costs.
Avoid unnecessary costs in shipping, transport, fuel, overtime, arrears and surcharges of any kind. You must be very jealous when buying for the purchase involves a number of variables that can improve your profits.
Finally, remember this important principle:
“Every penny that you leave in the pocket of someone else, is a penny that could be in your bag.”
