AUTHOR: Sean Edwards
READ THE ORIGINAL ARTICLE AT CAFE CULTURE INTERNATIONAL
One thing I have learnt in business is saving a dollar is like making two dollars.
If I can save $1 on a purchase and you have a margin multiplier of x 3 (300%) which turns the dollar you saved into $3 minus the $1 it cost you, you make $2!
Often, we think we must sell more to make more money, but buying smarter is an easy way to increase profits. There are lots of ways to make savings, like buying in bulk, run-out stocks, or picking up product directly from the warehouse.
I want to talk about cutting out the middleman. Most things you buy go through multiple hands and multiple monetary margin clips. For example, manufacturer – agent 10% – distributor 40% – retailer 100%. By the time the product gets from the manufacturer to you, you may have paid 50% more than needed. Often manufacturers won’t sell directly to the end user, but as retail space becomes too expensive and more people use online shopping, the manufacturer to customer model is developing.
We have been working closely with MPM Marketing on the café-supply side of their packaging businesses. They have created an online packaging business called Roastar which will allow coffee roasters and cafes to take control of their purchasing decisions and buy direct for mainstream products cafes use daily. They have also created Roastar branded café products that will fit straight into the look of the modern café structure.
