All too often, the challenges of being a SME can result in a business owner feeling at a disadvantage to bigger businesses.
According to Michael Reid of SME Savings, “This becomes obvious when it comes to negotiating with suppliers. Since SMEs do not have the same buying power as big business, most pay far more than they should for necessities. In fact, some suppliers inflate prices by 11 percent for SMEs!”
By teaming up with other SMEs to deal with suppliers as a group, you can actually increase your buying power and secure better deals.
Buying groups such as SME Savings do this for you. As a free unique service, it offers SMEs buying power of $25 million and negotiates discounts of up to 50 percent on their behalf, for essentials like stationery, fuel and banking products.
“You can also apply the same concept to industry-specific supplies by organising a mini buying group with like-minded SME’s, such as dress-makers ordering fabric in bulk together,” explained Reid.
The idea has proven popular, with SME Savings expanding their list of suppliers to meet increasing demand. Recently, the company signed a contract with United Petroleum to allow its clients to fill up on discounted petrol.
Michael Reid is the founder of SME Savings, a free group buying service exclusively for SMEs http://smesavings.com.au/