To have solidity and achieve success, every microentrepreneur or entrepreneur knows that it is necessary to adopt strategies focused on cost optimization, as well as increasing sales and profitability. Thinking about it, buying direct from the factory can be an excellent option.
Having good suppliers and investing in direct purchasing is a very important competitive differential. After all, it is through this partnership that good delivery times, flexible payment, greater variety of products and good profit margins are guaranteed.
More than that, buying directly from the factory, it is possible to obtain other advantages that will undoubtedly reflect directly on your revenue. Check.
Buying direct from the factory allows you to undertake with direct selling
This option is feasible not only for those who own a company, but for entrepreneurs who want to invest in direct selling and want to build their inventory.
This business model has been increasingly implemented because it allows you to buy directly from manufacturers and make your sales independently, without intervention by an intermediary.
Thus, instead of working as a seller with a formal contract, it is possible to have your own business and be remunerated by the commission on each sale made. Obviously with responsibilities and challenges.
The part of social security contribution and fiscal framework, for example, is the responsibility of the seller himself, as well as the strategies to promote the sale of the products.
But, on the other hand, the growth and revenue that direct sales can offer is something that cannot be denied. Proof of this is the annual publication carried out by Direct Selling News (DSN) magazine that brings some companies that obtained higher revenues through direct sales in 2018.
Avon, for example, managed to achieve no less than $5.70 billion in revenues. So did Amway and Herbalife, which earned $8.60 billion and $4.40 billion, respectively.
Therefore, buying directly from the factory is a strategy that enables participation in a highly profitable market. And this, in itself, is an important advantage to consider, but it’s not the only one.
Proximity to the customer
Buying direct from the factory helps to strengthen the relationship with your customer. After all, this way, you can offer exactly what he needs.
In addition, when the customer knows the close relationship that your brand establishes with the supplier, it helps to raise the level of trust and security that he has with your establishment.
As a result, your chances of retaining loyalty and securing recurring revenue are higher.
Reduced costs
Undertaking in the retail or wholesale market is something that involves certain costs for the business, especially companies that need to apply a large sales force.
When the entrepreneur or company starts to buy directly from the factory, it is possible to reduce these costs. Expenses with catalog printing or marketing strategies are easily recovered by the sales force most engaged in conversion.
In addition, buying products directly from the factory allows you to obtain lower prices, since this possibility eliminates costs with intermediaries. Therefore, your business has fewer expenses when it comes to replenishing inventory.
Other than that, you also have the chance to negotiate payment terms and amounts, which makes the final price of the product more affordable. Consequently, this also enables an increase in your profit margin.
Consultancy
Buying directly from the factory to invest in direct selling also opens the possibility of a work model, which is consultancy.
In this case, it acts seeking solutions to the needs of the client, that is, from the moment your audience presents a problem or demand, you enter with your consultancy presenting, among other solutions, the products in which you are a representative.
But beware! To make this an advantage and not a problem, it is essential that you implement the consulting service with clarity and honesty with your end customer.
Greater guarantee and quality of the products
When buying direct from the factory the guarantee and safety of the buyer on the quality of the products is much greater.
After all, in this relationship, as there are no intermediaries involved, the risk of counterfeits in the acquisition of the products is non-existent. So, after deciding which products you will sell or represent, it is essential to look for reliable suppliers.
Remembering that this ends up interfering in your direct relationship with your own customer, since when the seller works with quality products and that offer guarantee, the demand ends up increasing and there is loyalty.
Better shelf life
Another advantage of buying direct from the factory involves ensuring that the product is coming directly off the production line. This, in turn, increases your chances of getting products with better shelf lives.
The same no longer happens when buying by other methods. Often the validity is short and need to work with strategic sales and promotions not to lose money.
Now that you know the advantages of buying direct from the factory, do not waste time. Expand your sales with Galo and increase your chances of earning more with your business. Talk to our consultants now.
