It would be no secret to many businesses out there, that
bulk orders will always be the greatest source of income. When people are
willing to invest and purchase in a larger than usual order, then you are bound
to increase your business significantly more than average. This is the day that
every business appreciates.
There are many reasons that a bulk order can be a difficulty
for businesses though. The main aspect being the transportation of the order to
begin with. The cost of shipping items in such a large quantity will always be
the biggest expense for both the customer and the business. And if you are the
business owner, then you will not want to cover the costs yourself.
So, you must draw a fine line between home much of a
discount you can give with a bulk order. You cannot give a large discount to
the point it will begin to eat into the profits, especially if the deliver cost
will not cover the additional. When you calculate the actual weight of the
materials when you are shipping the products and the distance of the shipment
itself, you start to see a significant increase in the cost of the order
However, the point of a significantly large bulk order to
the point you can begin to offer a discount, you should still see a significant
profit margin altogether. That is why a bulk order should only be done when you
are aware that a significant profit margin is still existent after the discount
You also need to be aware of the discount amounts. IT’s always smart to go around the 5-15% discount, and no further than that. If you begin to give too high a discount, you start to see a drop-in profit. Especially depending on the actual mark up of the product you are shipping. We have a tiling Adelaide based company that bulk orders, and they benefit greatly from our supplys!
One of the most important aspects of being a building and
construction company supplier is ensuring that the way that you operate is both
socially and environmentally responsible. When you are discussing and
considering the storage and supply of so many different materials and items
that are involved in the building and construction of buildings, you realise
that so many of these items and materials need to be supplied responsibly.
When you factor in what these materials are made and created
from, you realise how much of the earths natural resources are being depleted
today by businesses around the world. There is so much harvesting of natural
resources around the world currently that you will find just how severe and
rapid this increase becomes after a few years in the supplier industry.
Therefore, you need to be a responsible supplier. You cannot
purchase thousands in kilos or tonnes worth of materials and expect to use them
all. You cannot expect to see such a large purchase and storage of materials
that are harvested around the world and see an irresponsible usage. Not all
these materials will be used, especially depending on the towns you are in. On
top of the depreciation affect that was spoken of earlier, this rings even more
When you consider there are so many trades, such as tilers
Adelaide companies and even carpenters who are large users of various
materials, there is a serious need to ensure complete responsibility to natural
The main hope for companies such as mine is that others
follow suit and do all they can to be ethically and morally responsible for the
materials that they supply. The more companies that are conscious of this, the
better chance that we can significantly reduce waste. That is part of the
reason you need to be responsibly with material inventory.
One of the worst potential downsides to a material building
supplier is the depreciation of materials that are left within a warehouse over
time. On top of the value depreciation, there is also the worry of having the
materials actual quality diminish over time too, especially if the materials
are not packaged in a professional way.
The first main issue when it comes to the aspect of material
quality lowering is worrying about potential hazards that are uncontrollable.
At any point, there could be a rainstorm or enough rainfall over a significant
period that some water or humidity will lock within the building itself. This
could cause dripping within the building and onto materials itself. This will
mean you have to worry about anything from rusting with nails and large metals
to overall rot or woodworm from wooden planks or other important materials.
Another aspect you must worry about is the ever-changing
economy for materials in the first place. There are so many different
dependencies when it gets to the actual value for your materials. Especially
depending on the type of wood that is supplied. And with the wood, there will
be a significant increase or decrease of how much that wood is worth. Oak,
maple and every other type of wood all have difference prices, and the more a
local economy is farmed for their materials, the more these couple be worth.
On the flip side, the more a certain type of product is
supplied within an area, the more the value of these items can depreciate.
Either way, there will be a significant increase in the costs of holding these
supplies over a significant period. Few suppliers would purchase materials in
bulk, especially if they cannot find builders or construction companies that need
these materials before they are purchased.