Profits are made in business when you buy and not when you sell. With this very important fact in mind it then behoves any sensible businessmen and entrepreneur to come up with cost effective buying strategies. Buying low, I discovered, is the secret of the masters.

Years back when as a greenhorn I entered into business I could never understand how sometimes a business partner get advertising at 40-50% off the normal rates. I thought then, that the profits roll in when you sell high enough. But the problem with selling high enough is that unless you successfully create an air of hype and exclusivity around your products or services your competitors might give the same quality at a bit lower price.

Sensibly, the best thing was to get down on knowing the best way to buy cheapest without compromising quality. There are 3 key areas where everyone ought to apply the principle of brilliant buying;

a) Advertisement: These days advertising is about the costliest means of marketing. When I wasn’t conversant with the idea of brilliant buying I always paid advertising media the full advert rates as stated in their rate cards. I thought they were non-negotiable. I must have been seriously naive. To push a product permanently into the minds of TV viewers and radio listeners we spent awfully so much that we later couldn’t afford to use advertising. Good enough that got us into thinking of more effective and low cost ways of getting people to do business with us.

Still if you are a business owner who would love to put your products/services on air it will pay to insist stubbornly on paying not more than 50-60% of stated rates. One way is to contact the advert section stating that you are willing to pay a certain percentage of stated rates ( 50% or 60% ) AND request that if their organization has a vacant ad space unsold they could put yours at the rate you specified.. Better still discuss with the media bodies in your area. Everything is negotiable in business.

b) Raw Materials: If you are in the manufacturing business or hospitality / food business where you’ll have to buy raw materials for conversion into products I daresay it is very important that you buy smartly. Buying smartly will entail hard negotiating to get the best prices available. Enquire if bulk buying comes with a sizeable discount. Enter into special private labeling deals or distributorships where you can get the products or raw materials at 30-60-% off. Most times you’d be surprised at how much you can reduce the cost of buying things needed in business.

c) Variable expenses: When Young and growing most companies keep a tight rein on their expenses but something happens when they grow fat and big. Money is then spent without justification. Money should not be spent to wasteful projects to assuage the feelings of any one person in the organization.

Brilliant spending and smart buying decisions will give your business a leg-up and ensure that your business becomes even more profitable.

If you have comments, questions or enquiries based on this article don’t hesitate to use the comment box below. We’ll try to answer or reply all questions.

Related posts:

1. 3 Keys To Brilliant Selling in Business