Cut Down On Office Supply Expenses

By Tom Stein

Office supplies are a recurring expense for most small businesses, and for some smaller ones, they can be a relatively big part of the budget. Regardless of size, it is possible for a business to cut down on expenses when buying office supplies.

Every small business should periodically review how they buy office supplies. Most companies buy from the same local supplier out of convenience, or because of existing relationships, but that might not always be the most cost effective action. Review the following smart purchasing habits.

Know When to Bulk Up

As is the case with most wholesale purchases, a discount may be available if office supplies are bought in bulk. A small business who goes through a tremendous amount of supplies, or one that finds itself replenishing supplies faster than expected, will probably benefit from discounts received on bulk purchases.

However, a small business who may not use office supplies as expediently may not want to make a bulk purchase simply to realize a discount. After all, inventory or supplies’ sitting in storage space is the same as cash gathering dust on a shelf.

Monitor Existing and New Vendors

A good business relationship has its advantages. When making decisions for your small business, price and service should be the determining factors.

A few responsibilities of the person in charge of office supply decisions include: setting the budget, monitoring changes in spending, and surveying prices offered by competitors to the existing supplier.

Suppose a small business owner likes to buy office supplies from a local office supply store Dunder Miflin which is owned by Michael Scott. Even though Michael is a good guy, and the small business has a good relationship with Dunder Miflin, if a different supplier is offering a much better deal there might  be a change. At the very least, the small business should approach Dunder Miflin to see if they can match the deal.

Join a Buying Group

Thanks to the internet, small business might be able to enjoy some of the same benefits that large corporations do when it comes to pricing on office supplies. Because of the size of the order, big companies can negotiate discounts by purchasing in bulk. For some small businesses, this might not be the best route because big orders can mean operating capital sitting on shelves.

Small businesses can join buying groups where several companies band together to fill larger purchase orders than they would by themselves to achieve the same discounts as large companies when they buy office supplies.

Supply Waste and Oversight

Waste is one way office supply expenses get out of control. For example, some employees print needlessly. Some leave the power on electronics even when not using them, the battery drains, and new batteries are needed. Putting conservation incentives in place at the office is one way to address this issue. In other cases, employees may be using supplies for personal use.

One solution is to put someone in charge of distributing office supplies. This way, supplies have to be checked out and managers can analyze who is using what supplies and at what rate.

Conclusion

Office supply expenses can add up over time. To realize savings, small businesses should know when to purchase office supplies in bulk, keep an eye out for deals, consider joining a buyer group, and establish oversight. Every business should review how they buy office supplies.