Check Your Suppliers’ Prices, or Pay Too Much! One of my clients received a letter from a vendor announcing a price increase of 7% in 60 days. Due to this vendor’s letter announcing the increase, I suggested that we schedule a meeting with the owner of the company in 30 days to discuss the issue. During the next month, we researched competitive vendors’ pricing compared to the current supplier. What we found was interesting. There were better prices and better quality products from other vendors in the market.
The letter about the price increase from the supplier made my client aware that he was overpaying for inventory. That vendor, as well as several others, was over-charging him. Most of my client’s existing vendors were selling his company for a long time. The suppliers were slowly moving up their prices knowing that he was not checking competitors’ pricing. The time invested in meeting with many of the vendors materially improved my client’s profitability.
You must continually check your suppliers’ pricing, quality, and terms or the result will be you overpaying your vendors!
My name is Robert Curry, and I am an Author, CEO Coach, Keynote Speaker, and Turnaround Specialist. Over the past 20 years, I have worked with more than 70 companies taking their businesses from Loses to Profits.
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Recently, I published two books about turnarounds: “From Red to Black – A Business Turnaround” and “The Turnaround.” Both books are true stories about turnarounds of real companies that I have turned around during my career. In both books, I have shared all my Profit Improvement Recommendations (“PIR’s”). PIR’s helped to grow sales, reduce expenses, improve cash flow, and most importantly, strengthen the management teams.
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