Business owners are always looking for the most economical practices for their business, perhaps now more than ever due to the Coronavirus pandemic’s devastating effect on businesses nationwide. Buying food in bulk is a practical option for saving money in the long-term for any business, and it’s especially cost-saving in the food and restaurant industry. Food takes up the majority of a restaurant’s costs, so finding less expensive ways to buy it is in the best interest of restaurant owners.
Businesses and households alike can benefit from bulk buying. It allows us to buy a lot of items at a fraction of the retail cost. Some negatives to consider would be storage, upfront fees, or food waste, however the long list of advantages outweighs the short list of negatives. Take control of your business’s money management and use buying in bulk as an effective strategy to save money, help the environment and more.
Environmental Benefits
When buying in bulk, less packaging is used which is
better for our environment. For example, when buying 30 pounds of pork, larger cuts of meat are packaged instead of using several small packages. Other items like rice, flour and oil can also cut down on the amount of food packaging.
Save Money
Buying in bulk for your business means spending less money per unit, which is usually the most attractive selling point for budget-conscious business owners. If your business is new to buying in bulk and want to start out conservatively, start with the guaranteed items used on a daily or weekly basis and watch how much longer it takes between buying and restocking.
In addition, when buying large numbers of units at a time, you gain has more leverage with the supplier. Consider negotiating a better price when spending more money upfront. When suppliers can consolidate packaging and make room in their inventory, they will be more open to cutting a deal. Business owners can spend then get to spend heir money on other, business-growth endeavors like advertising and
digital marketing.
Stay in Stock
Don’t risk running out of a popular item or key ingredient used in your recipe. When your business buys in bulk, products will last longer. Avoid the horror thatresults ina customer orderinga product and having to tell them you’re out of it. This example is great for busy seasons like summer in the northeast, or winter in the south. Making sure you’re in stock in popular items is also a great strategy for busier times like holidays.
Save in Travel/Delivery Fees
Get that time back that’s spent re-ordering items or traveling to buy them. Buying in bulk for your business will also allow for savings on delivery fees when ordering items less frequently. Instead, place a single order for the month or quarter and forget about it for a while.
Achieve Consistency
Give your customers more of the same, which in turn will keep them coming back for more. When customers become accustomed to a quality product, they will return. For example, when businesses buy wholesale chicken breading from
Wynn’s Grain & Spice, they’re able to offer their customers good food while keeping the costs down. And if they suddenly switched it up, their customers would know it.
With that said, buying in bulk for your business will allow you to achieve consistency. When purchasing a single order from a supplier, the entire order is produced at the same time. This will cut out inconsistencies with multiple orders, when you risk the quality going down on any given order.
Stay Profitable
Let’s face it – staying profitable is one of the main objectives for business owners. How can buying in bulk allow your business to stay profitable? Your profit margins will never be higher when buying in bulk because you’re purchasing the product at an all-time lower price than you’re selling it. Furthermore, if you pass on the savings to your customers, you can price competitively and attract more customers.
Simply put, buying in bulk is good for business. Buying small quantities can add up over time, in addition to the delivery fees that go with it. There is much less hassle involved with buying in bulk, allowing for more time spent on your business.
