Negotiate with suppliers. Even small discounts can significantly improve your margins over hundreds of transactions.
What to do
- Negotiate using expected volume, payment speed or repeat purchase history rather than simply demanding a lower price.
- Ask about bulk breaks, delivery support, packaging or payment terms as alternatives to price cuts.
- Compare the total landed cost, not just the supplier’s headline price.
Watch out for
Aggressive negotiation that damages trust can cost more than the discount gained, especially when the supplier controls important stock.
Example
A 3% supplier discount on ₦2 million of monthly purchases saves ₦60,000 before any other operational improvements.
Better purchase decisions start with knowing what products move, how frequently they sell and how much cash is available for restocking.
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