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How Using Local Vendors Can Help Your Business
03/29/2017

How Using Local Vendors Can Help Your Business

Five advantages of staying nearby to source your supply

How Using Local Vendors Can Help Your Business

When your small business is just starting out, it is important to keep costs at a minimum. Using local vendors can help keep costs low in a number of ways, and locally sourcing your supply has numerous additional benefits that should also be considered, like the five that follow:
 

1) The cost of ordering is less

 
First and foremost, local vendors tend to charge less for their products. Their less-formal ordering procedure and the lack of a need for high-priced shipping solutions are reasons for the lower costs.
Furthermore, local vendors are more likely to personalize your order rather than having to order from a bulk distributor in an attempt to cut costs. Local suppliers can create smaller batches, which requires minimal labor and reduced warehousing costs.
 
“Local vendors are perhaps best able to [provide] small miscellaneous supplies at the most economical cost,” write Charles M. Knox and Thomas W. Delanty of Professional Purchasing Consultants Inc. in the Illinois Municipal Review. “Even if a local vendor does not benefit from discounts available to larger suppliers or distributors, [it] may be able to offset such a disadvantage [through] the savings available in terms of greater inventory turnover and reduced delivery costs.”
 

2) You can better ensure quality

 
By sourcing locally, you can conveniently visit product facilities and conduct quality inspections yourself if you so choose. Ensuring quality is one of the most basic ways to keep your customers happy and coming back to you, and through local venders, you have an extra step in place to ensure the highest quality.
 

3) Delivery time is decreased

 
Not only are the costs of shipping and delivery cheaper, but it will take a lot less time to ship and deliver when you use local vendors. The prospect of having availability on shorter notice is attractive to business owners and customers alike, and it allows you to fulfill customer needs in ways that competitors cannot.
 

4) Extra services could be tacked on

 
Because of the convenience, local vendors are more likely to offer additional services with your order, such as repair services or discounted item replacement. Local buyers may also receive additional benefits including flexible payment terms and additional discounts, which is all the more reason to consider local options first.
 

5) It’s good PR

 
The entire “shop local” movement — actively doing your part to sustain a healthy local economy — is important to your target demographic – namely, people in your community. When you support local, local supports you back. By creating a sense of community between businesses, you are more likely to receive the support of the community at large.
 
Simply put, by using local vendors, you are going to get a significant return on investment in a myriad of ways.
 

Published by North Shore Bank. Includes copyrighted material of IMakeNews, Inc. and its suppliers. 

 

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