We would like to pass our sympathies to all affected by the attack on Fort Hood, TX today. We wish a speedy recovery to those injured and peace to the families that have suffered a loss.Thursday, November 5, 2009
Our Sympathies For Fort Hood, TX
We would like to pass our sympathies to all affected by the attack on Fort Hood, TX today. We wish a speedy recovery to those injured and peace to the families that have suffered a loss.Cutting Costs of Materials - Making a Supplier Comparison Chart
This article is for any small business that is looking to cut costs on their materials without sacrificing quality. Some of you are probably so busy with the holidays you don't want to think of the extra work involved to save some money. That's perfectly fine. I'll repost this in January when most people are ready to reevaluate their businesses and make goals for the future. Since I want to cut some costs now, I thought I would share how I go about it. There are probably plenty of ways to cut overall business costs, but let's focus on one method.No matter your business, you can cut costs by comparing suppliers. Of course in doing so, you need to be sure the products you are comparing are one and the same. Your products would lose their quality if you replaced your essential oils with a company that dilutes them. Just be careful that you are selecting reputable companies to compare.
I'm in the process of making a spreadsheet to organize the information. This makes it easier to compare the companies and not lose track of prices or get confused with materials, sizes, etc. Now if you want to do things right from the start, you should list all of your supplies, then look up all of the prices at all the suppliers that interest you. Is it work? Yes, it is. It will probably take you a couple hours. And if you do it without any organized method, you'll end up wasting more time. When you're ready to start shaving costs, giving you a bigger profit or allowing you to lower costs for customers, set aside an afternoon to comparison shop. You would be SHOCKED at the money you can save.
For example, I need to get more dead sea salts. Wholesale Supplies Plus, where I typically purchase them from, is currently out. I thought I would see if another company has the kind I like. And low and behold the prices of MANY of the competitors on this one item are anywhere from about $6-10 more per 10lb bag. And yes, that was comparing the same size. I didn't find any of the same size anywhere near the price offered by WSP. Does this company have the lowest prices on everything? No! I have found some of my supplies cheaper elsewhere. I need two different types. I would save $12-20 on those 2 bags of sea salt in one order. That's why doing a supplier comparison will save you alot of money.
I'm making a spreadsheet to use as a Supplier Comparison Chart. Along the top, I'm entering the suppliers I want to compare. Along the side, I'm listing every item that I purchase from suppliers to make my products. Some of the items come in different sizes, and I may purchase another size to save money. Just list each size with the name of the item, like this:
Dead Sea Salts (Fine) 1lb
Dead Sea Salts (Fine) 2lb
Dead Sea Salts (Fine) 2lb
Dead Sea Salts (Fine) 5lb
Dead Sea Salts (Fine) 10lb
Dead Sea Salts (Fine) 50lb
The rest of the spreadsheet is filled with prices. You can then highlight all of the boxes that have the lowest price. Save your spreadsheet and use it when you place orders. I know I want to purchase my salts from WSP, but I may purchase other products elsewhere.
There's one important factor that comes into play when price comparing - Shipping. Typically, the closer the company to your place of business, the cheaper and faster the shipping. I can drive to Camden Grey (and sometimes I do in an emergency - by the way, they offer lye at one of the best prices I've found), but I know a couple of the companies somehow offer great shipping rates to my location. So for a real comparison, look at the supplier's shipping prices to further evaluate the costs. Or if that's too difficult (some places it just isn't clear), stick with the standard supplier comparison table and know which company is closest or charges the best shipping rates. If all of the prices of an item are similar or in a good range of each other, highlight the one with the lowest shipping.
When I finish making my Supplier Comparison List, I will share it, so you can fill in your products and conduct your own price comparisons, thereby cutting the costs of your materials. I will have separate ones for bath/body, candles, packaging and fragrances. You will find that some of the price differences are quite large, which can potentially save your business alot of money.
Dead Sea Salts (Fine) 50lb
The rest of the spreadsheet is filled with prices. You can then highlight all of the boxes that have the lowest price. Save your spreadsheet and use it when you place orders. I know I want to purchase my salts from WSP, but I may purchase other products elsewhere.
There's one important factor that comes into play when price comparing - Shipping. Typically, the closer the company to your place of business, the cheaper and faster the shipping. I can drive to Camden Grey (and sometimes I do in an emergency - by the way, they offer lye at one of the best prices I've found), but I know a couple of the companies somehow offer great shipping rates to my location. So for a real comparison, look at the supplier's shipping prices to further evaluate the costs. Or if that's too difficult (some places it just isn't clear), stick with the standard supplier comparison table and know which company is closest or charges the best shipping rates. If all of the prices of an item are similar or in a good range of each other, highlight the one with the lowest shipping.
When I finish making my Supplier Comparison List, I will share it, so you can fill in your products and conduct your own price comparisons, thereby cutting the costs of your materials. I will have separate ones for bath/body, candles, packaging and fragrances. You will find that some of the price differences are quite large, which can potentially save your business alot of money.
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