As a business owner, you have to buy supplies for your business. But you don’t need to pay full price. To keep your costs as low as possible, you may want to see if you can negotiate lower prices from your vendors.
To convince your vendors to drop their rates, try to make the arrangement more favourable for them in other ways. For instance, ask your vendors if they will drop rates if you agree to a standing order of a certain volume of goods. That predictability may nudge them in the right direction. Alternatively, offer to pay earlier or use a payment method that costs them less money. Many vendors pay high processing fees on credit card transactions, and they may be convinced to lower their prices if you pay in cash.
If you can’t convince your vendors to drop their prices, you may want to try a few other money-saving strategies. Talk with other business owners and see if they’re interested in starting a buying collective. This is where you pool your purchasing power and buy in bulk. As a general rule of thumb, the more you buy, the more you save.
Also, take some time to look into the competition. Even if you can’t find the supplies you need locally at low rates, you may be able to find lower prices from vendors in other parts of the country or maybe even internationally. Don’t forget to claim your input credits. These are credits for the GST you pay on business purchases, and they help to lower your own GST liability.
Regardless of whether you’re able to negotiate discounts, you need the right accounting software to help you track what you spend. Cloud-based solutions such as QuickBooks Online are ideal for this task.