Quality Or Quantity? Six Tips To Help Businesses Save Money

Quality Or Quantity? Six Tips To Help Businesses Save Money

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Purchasing supplies and inventory often leads any business to face one very difficult question: quality or quantity? Ordering in bulk can provide a nice per item price break, but often the quality of the items is different than a brand name. Business owners must decide whether or not the price break is enough to justify the purchase of a lower quality item in a larger quantity. Often the process is individualized and can not be applied across the board to everything in the business. Luckily a few guidelines exist to help in the process.

Inventory

Often, inventory can easily be balanced on the quality versus quantity price guide by gauging turnover with profit margin. In a retail setting a certain amount of returns on an item might be acceptable, if the overwhelming majority of customers are returning to make the same purchase. Too much of a drop off in quality could spoil repeat business, which means a close eye needs to monitor the system.

Office Supplies

One particular area that buying in quantity can save businesses some money is office supplies. Pens, pencils, tablets and the like are all of similar quality and can be purchased for relatively cheap sums. However, when competitive price meets quality on items like credit card thermal paper rolls, business owners should take a serious look. Customers will leave the business with that receipt, and presenting a document that can be read clearly is of vital importance to putting the best face of the company forward.

Technology

Generally when it comes to durable goods like computers, tablets, and the like, staying somewhere in the middle of the price range pack is completely acceptable for most business endeavors. Specialized sectors, if a company exists in the technology sector for example, often mean quality always wins, but in less important areas, quantity is perfectly acceptable.

Janitorial Supplies

Quantity almost always wins in the area of janitorial supplies. Stocking the employee bathroom or cleaning closet with less expensive items that can be purchased quickly and cheaply offers businesses a nice way to save money and perform the same function as higher priced alternatives.

Software

Depending on the business, software might be a place where quantity wins. Often the more expensive areas offer extra benefits that many businesses simply do not need to function, which makes the less expensive alternatives that can offer multiple licenses a better fit. The specialized nature of operating software means something different for every business and needs to be carefully considered.

Employees & Customers

Employees and customers are often the biggest decision makers in a business, and it’s important to keep customers happy. Listening to their conversations, soliciting input, and asking questions can reveal exactly what type of feelings are toward a given item. Additional areas could be uncovered for savings, and some savings might be revealed to be not worth the effort.

In the end, quantity versus quality is a question that will be constantly examined in business. With multiple pricing tiers available, owners must be aware of what may or may not provide some sort of savings. However when the balance is located, the operation finds a certain harmony that literally pays for itself.

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Categories: Business Management

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