But how do I pay my Suppliers

A lot of businesses only consider that their expenditure when running a business equates to costs involving the criteria of who supplies them. It is probably prudent to think about all costs instead, that at the end of the financial tax year, as your accountant will most likely point out. If we take a small retail environment, let’s say a butcher, a common thought is that the raw meat supplied from the wholesaler is the predominant cost when working things out. Obviously, the appropriate profit margins are then calculated for a retail price to be displayed (and to a greater extent these costs are significant). The result of which is most commonly done through the refrigerated counter displays in the shop. Various items are then sold and hopefully there is no waste creating a profitable margin.

This is a common misconception, in that to run the whole business, when calculating business expenditure, the running costs are much more varied. In fact they are intricate.

Not only does the butcher need to pay the wholesaler, but they will need to cover a huge array of other substantial costs as well. These costs can vary extensively, but anything from cleaning, packaging, laundry, protective clothing, vehicle maintenance, pest control, accounting, bookkeeping, printing, refrigeration maintenance, advertising etc. etc. etc. the list goes on.

The prudent question therefore should be, how can I better make sure of paying my wholesaler instead, when I have all these costs to pay for as well? And not just relying on a one step blinkered approach!

Therefore, a great way forward is to sit down with a Trade Gate specialist and break down these costs accordingly. We will then show through comprehensive equations by calculating the savings to be made.