How Your POS Software Can Help You Get Better Prices From Your Suppliers
- By Jeff Haefner
Here's a quick and easy way to lower your cost of goods sold and boost your profits....
Simply open your POS software and pull up a sales report that summarizes the profit margin totals for each of your suppliers.
Now use that information to negotiate better prices with your suppliers.
Let me explain...
Many retailers fail to ask for discounts because they don't feel like they have the leverage of the big boys. In many cases, that's simply not true. You simply need to ask. The worst they can say is no. And you're more likely to get the discount if you have some relevant information at your fingertips...
For example, you could call your vendor and say, "I'm looking at the reports in my POS software and analyzing the profit margins for my business. I see that you're one of our top vendors, but our margins on your products are towards the bottom. In fact, they're 8% lower than our top two vendors. We really like your products and we would consider ordering even more, but we simply need to make more money. What can you do about better discounts on a permanent basis?"
I think you get the idea. This is much more effective than simply saying, "Can I get a discount?"
Now if you don't have a POS system you can get this information, but it will take a very long time to generate it. With the right POS software, you can whip out this information in a few seconds.
You'd be amazed how just asking for better prices from your suppliers can knock off a bug chunk of your inventory costs. And having actual data in front of you makes it easier get what you want.
To Your Success.
Jeff Haefner
Article sourced from http://www.possoftwareguide.com
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