How to Mitigate Inflation on Your Component Buys

How to Mitigate Inflation on Your Component Buys

It’s not news to anyone that inflation has been skyrocketing this past year. Increased costs across supply chains have led to significant end-user cost increases from automobiles to simple purchases like groceries. We would all like to pay as little as possible for the products we buy.

Here are some of the strategies you can employ to keep your component costs down:

Build relationships with the sales reps at your vendors.
1. Build relationships with the sales reps at your vendors.

They will know if they have some older stock built at a lower cost than they can offer you. Or if the price is about to drop in three weeks due to relief in raw material costs. Whatever the case may be, your sales rep is your best channel to uncover these advantages when making a component buy.

Buy in bulk.
2. Buy in bulk.

Price breaks come with increased volume purchases, make sure you are asking what the next price break is and how much more you would need to buy to reach an even better price.

Negotiate
3. Negotiate

There may be creative options to lower pricing. If you schedule an order over the next two years, will it decrease cost? If you buy multiple things from the same vendor are there any discounts available? If you don’t ask, the sales rep may not be thinking about it.

Explore inventory management
4. Explore inventory management

Putting your faith in a distributor to manage multiple SKU’s on an inventory management program could result in reduced overhead to your work and reduced pricing.

Here at Suntsu, we utilize these strategies to mitigate our material costs and keep our clients’ costs low. If you would like to take advantage of our inflation control measures, give us a call. We’re here to help you create what’s next.

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