Basically, when you want to start a glass bong business, and you want to buy it at a good price, China and India are the top 2 countries for you to choose from. This article can be a reference when you want to find a China glass bong supplier.
One of the most important tasks in budgeting is to control the cost of procurement. The essence of business is to make money. So the enterprise is expected to purchase and sell products to make a profit. To put it in a simple formula is:
Profit=Gross profit-costs
The procurement cost is appropriate only if the resulting profit is positive.
Here are a few things you can do to control your purchasing costs:
1. Research the function of a product or service
The research and analysis of the product or service can reduce the cost by eliminating simplification, change, and substitution with the lowest life cycle cost.
2. Optimize product design
When you are in the design and development period, you need to pay attention to the material selection. The rule of material choice is appropriate is better than the best. Sure, customers want high-quality products, but the most important thing for you is, the product performance meets market requirements in the case of the lowest cost.
Once a new product finalized, the material used is determined. Maybe you will adjust parts in the future, generally speaking, the range is minimal if it is not a functional defect. Even if you use this way to reduce costs, the benefits are very limited. Therefore, choose the material carefully to match product market positioning. Make the product has the best cost-effective at reasonable prices.
3. Set up a target cost management system
Target cost management based on the enterprise budget, according to the operation target, cost forecast, cost decision, and target cost determination, carry on a series of cost management work of target cost decomposition, control analysis, examination, and evaluation.
It takes the budget as the core, and benefits as the goal to form a multi-directional cost control system.
4.Joint purchases
Joint purchase is a way to increase the buying quantity and increase the bargaining space.
For example, there is a company A has two buyers, one named Tim and one named Amy, they work in two separate divisions, but they both need to buy a pipe item in1000pcs. They ask the supplier Dylan for the pipe at the same time, Dylan quoted them all for one dollar. However, Tim is a good bargainer, so his order price is 95 cents, and Amy’s order is 98 cents. In such a condition, company A loses the opportunity of saving the purchase cost. The best solution for company A is to enhance internal communication, gathering the order information, inquiry together, win more initiative from the supplier.
5. Purchase via agent
If your purchase demand is not very big, you can entrust a third party to purchase goods for you. Especially when you just start your business.
You can use outsourcing to help you. Search “Chinese sourcing” on Fiverr or Upwork, you can find a bunch of freelances who can help you do such stuff.
In a word, Fiverr is more cheaper and have more options, Upwork is higher but more professional.
If you are not sure that you could find a suitable agent in those freelance websites, well, you could check out the jingsourcing. There are too many sourcing agents in China, and they are the best. They have two packages to choose from, provide extra services. Still, the most important thing is, you can start with their free service for supplier inquiry and consulting.
6. Price and cost analysis
This is an essential ability for a professional buyer. Without an understanding of the cost structure, it would be impossible to know whether the prices were reasonable. Many opportunities to reduce the cost would be lost.
7. Standardization of product specifications
Use the same designs, specifications for products, or reduce the number of custom projects to achieve economies of scale and lower manufacturing costs.
When you use the same design for products, it helps customers recognize your brand. And when products list on the shelf all together in the same displays, it will make your company more professional.
8. Purchase on the Internet
Purchase through the Internet can reduce Information asymmetry problems. It can integrate and processing of procurement information, unified orders from suppliers to obtain the maximum volume discounts, minimize procurement costs.
Internet supplier sourcing is a big topic, it deserves another article to talk about. I will write an article about reliable websites to find manufacturers.
