Going Direct To The Source: Why It Could Save You Money

Estimated reading time: 2 mins

There are many costs associated with running a business, which could be saved by cutting out the middleman. Many businesses have had to reduce their operating costs lately, often by cutting jobs or reducing staff hours. By finding other ways to reduce your costs, you can keep your employees happy while also streamlining your business processes. Read more about why you should go straight to the source for your supply needs to save your business money.

Relationships are great, but are they costing you?

There are many benefits to using a distributor to purchase goods and equipment for your business. The main benefit of using a distributor (an industrial supplier or even a wholesaler, for example) to provide you with goods is the customer service angle. Suppliers make their money by offering a range of services that allow them to make things easier for customers, while also trying to sell other products – leading you to spend more money. The cost of having customer service and associated services means a cost for the distributor, which could come at a cost for you regarding higher prices and delivery costs.

Manufacturers’ energies are less focused on customer service and sales, instead of putting their energies into making the products. By going directly to them, you’ll miss out on the niceties that come with going through a supplier but save yourself some costs.

Getting exactly what you want, how you want it

Another benefit of going straight to the supplier is that you can get some bespoke products made according to your needs. Tool making, for example, is something specialist trades can benefit from to promote their brand using different colours and styles and to keep things approved and uniform. Going directly to the supplier allows you to make adjustments and tweaks when needed, and you’ll benefit from lower costs than if you were to liaise with the supplier.

Sourcing from local suppliers

Not all distributors and suppliers have the interests of local producers at heart. As their focus is usually on lower costs, the local element may be missing from this process. It’s important for many businesses to be seen as supporting local businesses, and you could be doing your bit by going to a local manufacturer as opposed to one from overseas. As you’ll be going to the manufacturer directly as opposed to the distributor, you could even find yourself saving the money you thought you were saving by going to an international manufacturer.

Choosing whether or not to forgo the middleman is entirely up to you. There’ll need to be a different form of relationship management on your part, but you could find this new way of working much better for your finances. If you’re looking for other ways to save money for your business, take a look at the little office things that can add up a lot. Sometimes savings can be made in the unlikeliest of places, but doing some analysis now and then could help you keep your business costs down.

Image: Wikimedia Commons


About the author /

Simon is a creative and passionate business leader dedicated to having fun in the pursuit of high performance and personal development. He is co-founder of Applied Change, a Business Change consultancy based in the UK. Simon is also an Ambassador for Gloucestershire business. Simon is an Associate Member of the Chartered Institute of Professional Development.

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