Thursday, December 13, 2012

How To Use Competing Vendors In Your Restaurant Business


Regardless of the type of restaurant business you operate, you are likely to want to reduce costs and maintain quality at the same time. One way to do so is to let your suppliers compete with each other for your business. Competing vendors want to maintain the volume of sales made to your establishment. When you understand that many of them are willing to adjust prices in order to keep your business, you can make the type of small but consistent savings that improves your bottom line. Here are some tips in finding and using the principle of competition.

Identifying a new restaurant supplier may be a benefit in terms of cost of supplies. It is hard to break into a new marketplace. A vendor moving into a new geographical location or product line might offer price savings on items that you need for your operation. The vendor might just want to encourage local entrepreneurs to improve the economic picture of the region.

A vendor might offer price breaks if he is looking for the volume you can provide. Vendors make money with volume sales, just as you make money by selling more meals to patrons. The vendor might be willing to shave pennies off a price in order to get your business and promote your good will. A specific route followed by a vendor can be a cost savings for him that can be used to benefit your cost.

Part of the ability to get your supplies at the best price is to have a good knowledge of a baseline price. You can let a supplier know that a competitor can supply the same or similar item at a lower price. This should be done in a professional and courteous manner. The vendor is more willing to work with you if he is treated politely.

There is one caution that applies when using competition as a price tool. The price should not be reduced because you are getting an item of lessor quality. Your customers will notice the difference. It's important that you have the knowledge of quality standards that you want your eating establishment to maintain. The products you use are part of those standards.

Making use of competition between your vendors and suppliers will help you to maintain your profitability picture. Competition is a healthy part of doing business, both for you and for the businesses that supply your products. Competition in a regional market benefits the economic picture of the entire region.

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