Bulk buying creates value down the road. In simple words, this means when you buy something in larger quantities, your seller can reduce your cost of buying. Sellers can do this because their products are sold instantly, this gives them a chance to save money at a number of levels of their trade process.
When we talk about buying lubricants in bulk, this means that the buyer and seller will both save money at different levels of their procurement, distribution and storage processes. It is for this reason that many manufacturing plants around the world have resorted to buying lubricants in bulk from petroleum product sellers and distributors. We can also understand why bulk oil storage systems are considered significant in plants that manage big machines or hydraulic systems. Some benefits of buying bulk are stated below:
Reduced Transportation Cost
Buying smaller quantities means more transactions and shipments. This will definitely raise your handling costs or perhaps your transportation cost if the goods are delivered to you. Either way, this is an extra cost that is saved or reduced once you buy in larger quantities.
Reduced Packaging Cost
There are different types of packaging having different quantities of products in the market. If you buy small quantities their packaging cost will increase. This can be avoided by purchasing in bulk as one container can be used for more products.
Reduced Storage Costs
Manufacturers and distributors have warehouses at their disposal to keep their products safe and stored. Consumers often do not consider this cost. However, when these distributors and manufacturers sell in bulk they save in storage cost.
Reduced Handling Cost
Products require management systems, database systems and people to handle their placement, storing conditions and other aspects. Smaller quantities need the same amount of input, therefore, it’s better to deal with large quantities as it saves cost and brings in added value.
Reduced Use of Resources
Small quantities use more resources such as more travel cost, handling cost and more manpower. A shop manager always prefers to have less routinely shipments to deal with in his or her shop. Making it more beneficial if they manage less larger shipments rather than more smaller order shipments.
When a seller sells in bulk they are able to push more product and yield better profits. This allows them to control or save their foreseeable costs increasing their profits. This in fact is identified as business to business selling or b2b selling in the corporate world.
When a seller is making more profits or saving more money from a transaction they can offer discounts to the buyer for further attraction. It is a common practice by sellers, to offer discounts if consumers buy larger quantities.
Fast Trade Processes
Bulk buying or selling increases the pace of the business or trade process, it reduces the waiting period for all the stakeholders. This in itself is cost-effective and very convenient for business growth. It also reduces the chance of product wastage as they will not be exposed to waiting and improper storage conditions.
Micro-Lube is your number one choice for commercial and industrial lubrication solutions. We are suppliers and troubleshooters for oil filtration systems and offer a one-stop solution. Visit our website for detailed information or call us to get a free quote regarding bulk oil storage systems, lubricants and filters.