Are companies just trying to make up for losses from the last eighteen months?
Todays post is by Ronald D Southard, CEO of SafeSourcing Inc.
These are legitimate questions because consumers at all levels of the economy are being charged more for what they are buying. There are all sorts of reasons such as the pandemic, and its impact on the global supply chain. Shortages driven by drought and other natural disasters; the dilemma of a single source supply chain that is kicking companies that went that way in the tail. I could go on and on. While there are all sorts of reasons and excuses, the fact is that companies do not need to accept the level of rising prices that they are being given by their vendors/suppliers. Nor do the vendors/suppliers need to accept the prices they are being offered for the commodities they need. And most importantly consumers do not have to accept these price increases because they have the freedom to choose to go elsewhere with their money. Consumers should try building their own shopping list and get prices from at least 5 or 6 sources. Use online price lists and shelf prices from stores you regularly frequent and others that you do not for one reason or another. You will find better pricing for pretty much the same items, and you can also take the additional step and ask if that is the best your retailer can do. Seek out the grocery manager and say I really like your store, but the price on this item is lower elsewhere. If you do not try, you will never know.
Here is a fact for retail companies that are raising prices to their end user, the consumer. You are overpaying your suppliers. If your procurement department is not focused on getting you the best possible price, then they are not doing their job. SafeSourcing continues to source cost of goods items, services, and capital items for our customers at significantly below the prices retailers are being quoted by their supply chain partners. Again, if you always do what you have always done, you will never see improvement.
Here are just a few of the items our customers have recently sourced at much lower prices than their suppliers’ recent quotes. These are all within the last 60 days.
- Bottled Water 30% below recent price quote
- Can Liners 10% below most recent price quote
- Hispanic Food 15.7% below most recent price quote
- Sugar 9.4% below most recent price quote
- Corrugate Packaging 20.4% below most recent price quote
I could add dozens more in all areas of your business, but for readability with leave it at five.
Companies are focused on so many issues today relative to hiring, product mix and availability amongst others that I do not believe all is being done that can be to make sure that the best price is being made available to them or their customers.
If you don’t believe me or just are thinking blah blah blah, then call me on it and we’ll prove it to you at ZERO RISK!