1. UP TO 25% DISCOUNT OFF RAW MATERIALS
Zoro Tools is an online store (www.zoro.com) that supplies a selection of over one million industrial supply products. Discounts of up to 25% and/or free freight are frequently offered. The components offered are often the same manufacturer and model purchased from other vendors. A 25% discount on raw materials could have a significant impact on a manufacturer's overall returns.
You can get on Zoro’s mailing list and you will get coupons periodically. My experience has been at least a couple times a month. The discounts are typically for a short period of time – maybe one or two days – so you need to be prepared to buy when you get the coupon.
If you compare the carrying cost of inventory to the discount, it makes sense to buy as much as you can…. as long as you are certain you will not need to scrap the goods.
2. ACCEPTING CREDIT CARDS
Before signing up with a credit card processing company, contact a few providers to compare fees – (i.e. monthly minimum fee, transaction fee, % of sale).
Choose a company that has an online mechanism to process payments. You will eliminate the need to purchase credit card processing hardware and be able to accept credit card payments anywhere internet access is available.
3. SIGN UP FOR A UPS ACCOUNT
Fees are significantly lower when you create your own UPS labels and you don’t need to stand in line at the UPS counter. You can just drop the package on the counter and bypass the line.
4. AVOID SHIPPING VIA UPS IN ROUND CONTAINERS
Try not to ship via UPS in non-rectangular containers. There is an additional fee (i.e. shipping tube) for shipping tubes.
5. REVIEW UPS BILLING FOR INCORRECT ADDRESS INFORMATION
UPS charges a fee for each incorrect mailing address used on a label. Check the bill each month to see what corrections they had to make and update your address source so you don’t get the same charge over and over.
I share small business insights and tips that I learned from being co-founder and CEO for 12 years at an equipment manufacturing company.
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